Tether is winding down Alloy by Tether, and customers have until Sept. 17 to recover XAUT tokens through the platform. After that date, the terms don't spell out what happens to the collateral.
The numbers behind the wind-down
As of Aug. 10, five open collateral-mint positions remained, carrying 399,088.74 aUSDT in debt and 194.41497 XAUT as collateral. That's a sharp drop from June 30, when open debt stood at 907,994.8205 aUSDT and collateral at 470.4215 XAUT. Open debt fell 56% in that stretch, and collateral fell 58.7%.
The maximum aUSDT supply is 50,000,005, but that figure doesn't represent open debt. Unissued tokens can sit idle, and actual debt is less than 0.8% of the max supply. So the platform isn't near its ceiling — it's just winding down.
How recovery works
To get XAUT back, a position holder must extinguish the full aUSDT balance. A 25-basis-point return fee applies. Buying aUSDT on the secondary market doesn't confer any rights to the collateral — only the original position holder can recover it.
The platform's API shows 209 holder addresses, while Etherscan lists 80. Neither number maps cleanly to the five open positions, because a single customer may control multiple addresses. That makes it hard to know exactly who's still exposed.
What's left unresolved
No operational recovery process is set for after Sept. 17. The terms don't explain how XAUT will be disposed of once the deadline passes. And the XAUT in a position is pledged to Tether AbT — it's not held as a segregated asset in the customer's name.
That means the clock is ticking. Anyone with an open position needs to act before the deadline, because after that, the platform's own rules go quiet.
