Alloy Tether

ausdt
Rank #422•Stablecoins, Ethereum Ecosystem
CoinYQ Dossier

Alloy put a dollar label on gold collateral, then closed the mint

aUSD₮ joined a dollar unit, a gold token and a permissioned vault in one position. That combination looked familiar on the surface, but its rights were split across separate issuers, contracts and customer rules. Two years after launch, Tether ended new minting and turned the experiment into a deadline-driven unwind.

The dollar unit arrived on 2024-06-17

Tether introduced Alloy by Tether with aUSD₮ as its first Tethered Asset. Users did not deliver dollars to mint it. Verified customers deposited XAU₮ into an Ethereum vault and created aUSD₮ intended to track one U.S. dollar while remaining overcollateralized by tokenized gold.

The issuers were Moon Gold El Salvador and Moon Gold NA, together called Tether AbT. Their RID records El Salvador stablecoin-issuer and service-provider authorizations but warns that registration does not certify the token's quality or the issuers' solvency. The regulatory fact therefore identified the operators without turning the design into a government guarantee.

A gold token sat beneath a synthetic dollar

XAU₮ and aUSD₮ carried different claims. Tether Gold documents XAU₮ as an interest in one fine troy ounce on an identified custodied bar, subject to its own allocation, KYC and full-bar redemption conditions. Alloy locked that token as collateral; it did not transfer XAU₮'s gold title to every person who later received aUSD₮.

The primary-market relationship was also narrower than open ERC-20 transfer. Only verified, whitelisted customers could mint and return through the vault, and the RID says Tether AbT's obligations applied to those customers and primary-market transactions. An aUSD₮ buyer on a secondary venue acquired the token, not automatically the minter's XAU₮ position or a claim on USDT's separate reserves.

The oracle drew the liquidation line

The vault priced XAU₮ through an oracle, treated aUSD₮ as one dollar for its calculations and limited debt to 75% of collateral value. Crossing that line opened the position to whitelisted liquidators. A liquidator returned aUSD₮, received XAU₮ worth 105% of the returned amount and paid a 0.75% fee; mint and return each carried 0.25% fees.

Transparency did not remove operator power. aUSD₮ and the vault used proxy deployments; the vault owner could change financial and permission parameters, the token could blacklist and freeze, and designated operators could freeze the oracle. Vault token balances were visible on-chain, but execution still depended on correct prices, approved liquidators, custodied XAU₮ and privileged keys.

A two-year experiment became a three-month exit window

The 2026-06-30 disclosure still reported 470.4215 XAU₮ in the smart contract and 907,994.8205 issued aUSD₮. Yet on 2026-06-17 Tether AbT had already announced a wind-down after reviewing activity, demand and broader priorities. The interface stopped opening positions and minting new tokens that day.

Existing customers were given three months to return aUSD₮ and remove XAU₮. The current notice says that, starting on 2026-09-17, customers who have not returned their aUSD₮ will no longer recover XAU₮ through the platform. They therefore need to finish the return and recovery before that date. Alloy's lasting lesson is therefore operational: gold collateral did not make aUSD₮ a gold token, and an on-chain balance does not guarantee continued access to the platform recovery route.

How the project changed

  1. 2024-06-17
    Alloy and aUSD₮ launch

    Tether introduces aUSD₮ as a USD-denominated Tethered Asset overcollateralized by XAU₮ on Ethereum.

  2. 2024-06-30
    First quarterly reserve report

    The first reporting date begins Alloy's series of aUSD₮ issuance and XAU₮ collateral disclosures.

  3. 2026-06-17
    New exposure closes

    Tether AbT announces the wind-down and removes new positions and aUSD₮ minting from the interface.

  4. 2026-06-30
    Final published quarter before the deadline

    The disclosure reports 470.4215 XAU₮ held and 907,994.8205 aUSD₮ issued at 23:59 UTC.

  5. 2026-09-17
    Platform XAU₮ recovery deadline

    The notice says the platform XAU₮ recovery route will no longer be available starting on 2026-09-17; that date is not an additional day to complete recovery.

Evidence and primary sources

Last evidence review: 2026-09-05

What is Alloy Tether?

Alloy by Tether was a platform for creating so-called Tethered Assets against collateral. Its first token, aUSD₮, used Tether Gold (XAU₮) inside an Ethereum vault while expressing its target value in U.S. dollars. The six-decimal aUSD₮ contract is 0x9EEAD9ce15383CaEED975427340b3A369410CFBF, and the vault proxy is 0x4C1ec3d1519225f36958408fDD33a0D5ba1F2fa7.

aUSD₮ was neither USDT nor XAU₮. USDT follows a separate fiat-reserve product, while XAU₮ carries the documented interest in custodied gold. A verified Alloy customer deposited XAU₮ and created a collateralized minted position that issued a synthetic dollar unit. New minting closed on 2026-06-17. Customers need to complete their return of aUSD₮ and recovery of XAU₮ before 2026-09-17, when platform recovery becomes unavailable.

What problem does Alloy Tether solve?

Alloy asked whether a holder could keep exposure to tokenized gold while creating a transferable dollar-denominated asset. Overcollateralization made that possible without selling XAU₮, but it did not erase gold-price movement. The vault needed an oracle to compare aUSD₮ debt with XAU₮ value, and a falling collateral ratio could trigger liquidation.

The product also joined three different legal and operational layers. Tether AbT operated the verified mint-and-return service; the vault and token had privileged controls; and TG Commodities' XAU₮ terms governed the gold interest and custody beneath the collateral. A secondary-market aUSD₮ holder therefore could not infer a general dollar redemption right, direct title to a gold bar or unrestricted access to the primary-market return process from the ticker alone.

How does Alloy Tether work?

Before minting closed, a KYC-verified address deposited XAU₮ into the vault and minted aUSD₮ while keeping minted-to-value below 75%. The oracle treated one aUSD₮ as one U.S. dollar and supplied the XAU₮ price. The published fee schedule charged 0.25% on minting and 0.25% on return. Returning all minted aUSD₮ was the documented route for a position owner to withdraw all associated XAU₮.

When a position exceeded the 75% liquidation point, a whitelisted liquidator could return aUSD₮ on its behalf and receive XAU₮ worth 105% of the returned amount. The liquidator paid Tether AbT a 0.75% fee. This mechanism protected overcollateralization but exposed the position to oracle errors, gold volatility and a permissioned liquidator set.

The contracts were not autonomous in the sense of having no operator powers. The vault was deployed behind a TransparentUpgradeableProxy, and its owner-facing interface could change fee destinations, interest, mint limits, permission control and blocked callees. Official aUSD₮ documentation also disclosed blacklist and fund-freeze functions, while designated operators could freeze the oracle. On 2026-06-17 Tether AbT removed new exposure by closing minting; the current notice requires customers to complete their return of aUSD₮ and removal of XAU₮ before 2026-09-17; platform recovery is unavailable starting on that date.

Key facts

  • Tether launched Alloy by Tether and aUSD₮ on 2024-06-17.
  • aUSD₮ targeted one U.S. dollar but used overcollateralized XAU₮ positions rather than USDT reserves.
  • The Ethereum aUSD₮ contract is 0x9EEAD9ce15383CaEED975427340b3A369410CFBF and uses six decimals.
  • The main vault proxy is 0x4C1ec3d1519225f36958408fDD33a0D5ba1F2fa7; the documented implementation was 0xC4f86E9B4A588D501c1c3e25628dFd50Bc8D615e.
  • Only verified, whitelisted addresses could use the primary mint-and-return service.
  • The vault used an oracle and a 75% maximum minted-to-value liquidation point.
  • Liquidators were whitelisted and received XAU₮ worth 105% of returned aUSD₮ while paying a 0.75% fee.
  • The documented mint and return fees were each 0.25%.
  • Vault ownership could change parameters and permission control; aUSD₮ could blacklist addresses and freeze funds.
  • XAU₮ holders have the documented interest in custodied gold; an aUSD₮ balance alone is a different legal and technical position.
  • Moon Gold El Salvador and Moon Gold NA operated as Tether AbT issuers; CNAD registration did not certify quality or solvency.
  • The 2026-06-30 disclosure reported 470.4215 XAU₮ held and 907,994.8205 aUSD₮ issued at that timestamp.
  • New positions and minting closed on 2026-06-17.
  • Platform XAU₮ recovery becomes unavailable from 2026-09-17; customers must complete the return of aUSD₮ and recovery before that date.

Official links

Official websiteWhitepaperBlock explorerX / Twitter

Categories

StablecoinsEthereum Ecosystem

Related coins

Tether#3USDC#5USDS#11Dai#20Ethena USDe#24Global Dollar#26

Frequently asked questions

Is aUSD₮ another name for USDT?

No. aUSD₮ was a separate Ethereum token issued against XAU₮ collateral. It did not use the USDT reserve product or inherit a general USDT redemption right.

Does every aUSD₮ holder own physical gold?

The documented gold interest belongs to XAU₮ holders under Tether Gold terms. A verified Alloy position owner deposited XAU₮ as collateral and could withdraw it by returning the position's aUSD₮; a secondary-market aUSD₮ balance alone did not establish title to a particular gold bar.

Can users mint aUSD₮ now?

No. Tether AbT closed new positions and minting on 2026-06-17. Existing customers are in the unwind period described by the current notice.

How did liquidation work?

At more than 75% minted-to-value, a whitelisted liquidator could return aUSD₮ and receive XAU₮ worth 105% of that amount, while paying a 0.75% fee. Oracle prices determined when the threshold was crossed.

Could administrators change or stop the system?

Yes, within documented powers. The token and vault used proxy architecture, vault ownership could change parameters and permission controls, aUSD₮ supported blacklist and freeze functions, and designated operators could freeze the oracle.

What does the El Salvador authorization prove?

The RID says the two Tether AbT entities were authorized stablecoin issuers and service providers. It also says registry entry does not certify token quality or issuer solvency.

What happens after 2026-09-17?

The notice says the platform XAU₮ recovery route will no longer be available starting on 2026-09-17; that date is not an additional day to complete recovery.

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