Tether Announces Termination of Gold-Backed aUSDT Repurchase on Alloy by September 17
Tether has revealed that its synthetic USD platform Alloy, which issues aUSDT tokens backed by physical Tether Gold (XAUT), will stop supporting the repurchase of gold-collateralized aUSDT on September 17, 2026. After this date, users who have not closed their positions will be unable to redeem the corresponding XAUT tokens through the platform.
On-Chain Data Highlights Five Open Positions Holding $400,000 in Debt and Nearly Two Tons of Staked Gold
Analysis of Alloy’s official API and Ethereum blockchain data as of UTC August 10, 2026, 00:04:52 shows five open collateralized positions remaining on the platform. These positions collectively carry a debt of 399,088.74 aUSDT and represent 194.41497 XAUT tokens pledged as collateral. Based on current gold prices, the staked gold’s value approximates $50 million.
Notably, while the total aUSDT supply reached 50 million tokens, the outstanding debt accounts for less than 0.8% of this supply. Since June 30, 2026, when 908,000 aUSDT debt and 470 XAUT collateral were disclosed, the debt and pledged gold amounts have declined by roughly 56% and 59%, respectively.
Uncertain Asset Liquidation Ahead as Repurchase Option Ends
Under Alloy’s operating framework, users must fully repay their aUSDT liabilities to reclaim pledged XAUT collateral. Purchasing aUSDT tokens on secondary markets does not confer any right to extract the linked gold.
Tether’s announcement did not clarify how remaining pledged collateral will be handled after the repurchase service ends, nor did it offer alternative redemption channels. Contract terms stipulate that while the XAUT collateral remains owned by users, it is pledged to Tether’s subsidiary AbT as loan security and is not separately held in the client’s name.
This situation has raised concerns regarding the security and handling of user assets, particularly for the nearly 200 XAUT tokens still pledged. The legal status and operational management of these collateralized assets remain unclear, with no additional statements from Tether to address these questions.
Market Context and Tether’s Position
Currently, Tether’s flagship stablecoin USDT ranks third globally by market capitalization, standing around $18.3 billion, with a 24-hour trading volume near $47.5 billion and a total supply near 183.25 billion tokens. As the dominant stablecoin issuer, adjustments in Tether’s synthetic asset offerings, including gold-backed products, draw significant investor attention.
On-chain data combined with official disclosures indicate Alloy is scaling down operations. While collateralized gold and outstanding debts have substantially decreased, outstanding questions remain on asset ownership and debt obligations. Market participants and platform users are advised to monitor future updates closely for detailed guidance and any risk disclosures.