Stablecoin issuer Tether will end its gold-backed stablecoin aUSDT and its issuance platform Alloy by Tether two years after launch, Cointelegraph reported on June 18.
Tether made the decision after reviewing user activity, market demand and company priorities, the report said. It plans to focus resources on areas with strong demand and broader long-term market opportunities, including its gold-linked digital asset XAUT.
aUSDT is an overcollateralised derivative built on XAUT using Ethereum smart contracts. Through Alloy by Tether, users can deposit XAUT as collateral and mint aUSDT.
The structure requires the value of locked XAUT to exceed the value of issued aUSDT. This allowed users to secure dollar-like liquidity without selling their gold assets.
Tether previously halted its offshore Chinese yuan stablecoin CNHT in February due to a lack of demand. In November last year, it wound down its euro stablecoin EURT because of European regulatory issues, among other reasons. In May, it announced plans to launch a Georgian lari stablecoin GELT in cooperation with the Georgian government.
Chi-gyu Hwang (황치규)
delight@d-today.co.kr