"Time is running out to reclaim your gold-backed tokens," warned a trader who recently closed a position on Alloy by Tether. The platform, which allowed users to mint aUSD₮ the dollar-pegged synthetic stablecoin against XAU₮ (Tether Gold) is shutting down its minting and redemption services by September 17, 2026. Users who opened positions using XAU₮ as collateral must act before this cutoff to avoid losing access to their locked gold tokens.
Alloy’s closure means no new minting or redemptions will be processed after the deadline. For those who minted aUSD₮, the process is clear: repay the stablecoins, cover any fees, and unlock the underlying XAU₮ collateral. However, holders who acquired aUSD₮ tokens through exchanges or decentralized markets without collateralized positions face a different challenge. They typically cannot redeem aUSD₮ for XAU₮ on Alloy, as the platform only supports redemptions for collateralized users. Instead, swapping aUSD₮ back into USDT or USDC on centralized exchanges or DEXs with sufficient liquidity is the most practical option.
The aUSD₮ supply currently hovers near 50 million tokens across 82 holders, with its market cap just below $50 million at the last snapshot. the token’s price dipped to an all-time low of $0.9698 on June 30, 2026, reflecting peg risks common during unwind phases. Meanwhile, the XAU₮ collateral received Shariah certification in late July 2026, an independent milestone unrelated to Alloy’s wind-down but significant for token holders valuing compliance.
Those who minted aUSD₮ should prioritize closing their positions before the September deadline. Secondary market holders must plan to offload their tokens through exchanges since Alloy won’t facilitate redemptions for them. This situation echoes other recent developments in tokenized assets, like how tokenized gold endured a major market shock, underscoring the complexities of synthetic stablecoins backed by physical assets. With the clock ticking, early action will prevent unexpected losses.
This article is for informational purposes and does not constitute financial advice.
