Tether shuts down Alloy platform: How to redeem aUSDT before September 17

Alloy by Tether is about to close, time is running out

If you have used XAU (Tether Gold) as collateral to mink aUSD, you need to complete the operation before a clear deadline to retrieve your gold-backed tokens.

The last day to use this platform to redeem collateral is September 17, 2026. After that, the platform redemption function will cease. There will be no new positions, no new mints will be made, and there will be no opportunities for remediation after the deadline.

This guide will explain who needs to take action, how to redeem aUSD to XAU, and what to do if you just hold aUSD purchased on the exchange. Please keep it simple, act early, and check the links carefully.

Quick view of key information

Deadline: Alloy by Tether's redemption feature will end on September 17, 2026; new position creation and casting features have been disabled.

Users who must act: Users who have opened positions (i.e., used XAU collateral to make aUSD) need to repay their debts and redeem the collateral before the deadline. If you only hold aUSD, you cannot convert it to XAU through the platform. Please consider exchanging on a decentralized exchange or a centralized exchange.

Chain snapshot: aUSD supply is approximately 50 million, with 82 holders, and a market value of just less than US$50 million.

Price behavior: The historical low price is US$0.9698, which occurred on June 30, 2026, indicating a risk of pegging to the U.S. dollar near the closure event.

Collateral Description: XAU obtained Shariah compliance certification on July 27, 2026, which has nothing to do with the closure of the Alloy platform.

What exactly is closed and why is it important

Alloy by Tether allows users to mint a synthetic asset pegged to the U.S. dollar, aUSD by locking XAU as collateral. This casting and redemption mechanism is about to close. New positions have been blocked and the redemption window will end on September 17, 2026.

If you cast aUSD, your path of action is conceptually straightforward: repay your aUSD, settle any unpaid fees shown in the app, and then unlock your XAU. If you just hold aUSD purchased elsewhere, you may not be able to use the Alloy platform to convert it to XAU because you have no collateral positions to close. Your best approach is usually to trade tokens back to USDT or USD on an exchange with real liquidity or a decentralized exchange.

Who needs to take action, and deadlines

There are two groups of people to focus on:

Founders: You opened a position by depositing XAU. You must close the position by returning the aUSD you forged before September 17, and then withdraw your XAU.

Secondary holder: You purchased aUSD on an exchange or a decentralized exchange. You will likely need to sell or redeem your aUSD rather than redeem it because you do not have a vault to close your position.

Deadlines are hard. Platforms that perform controlled shutdowns typically do not set a "grace period" for smart contracts. Even if the time zone is unclear, don't delay. It is recommended to complete operations at least a few days in advance to avoid last-minute congestion and user interface issues.

Professional tip: Use the 10th to 12th of each month as your personal deadline. This gives you a buffer to process authorizations, bridge funds for fuel bills, or buy the difference if your position requires more aUSD to be repaid in full.

Step-by-step guide: Redeem aUSD as XAU collateral

1) Confirm the assets you actually hold

Open your wallet and check the aUSD balance under the correct contract. If you don't see the balance, please add the token through the contract address and refresh it.

2) Verify official redemption links

Do not search for random URLs through Google. Start from the official Tether website and then navigate to the Alloy app from there. Add it to a bookmark. If there are pop-ups or tweets that provide "faster redemption" services, it is a trap.

3) Connect to the wallet for opening positions

You must use the same address where you created the aUSD position. If you don't see your vault or collateral, you may be connected to the wrong wallet or network.

4) Check outstanding amounts and expenses

The app should display how much aUSD you need to repay to close the position. If the balance you hold is not enough to pay off all of your debt, buy the difference on an exchange or a decentralized exchange. Make sure you are purchasing the correct token and confirm the contract address before trading.

5) Authorize, Refund and Refund

If prompted by the system, authorize aUSD to spend and then perform the repayment. Once the debt is paid, you can redeem your XAU. Wait for confirmation before proceeding to the next step. Please reserve a small amount of ETH as a buffer for subsequent transactions.

6) Keep your XAU properly

Decide where your XAU will be stored. If you hold it for a long time, transfer it to the hardware wallet you control. If you prefer exposure to U.S. dollars, please convert XAU to USDT or USDC on a liquidity platform you trust.

Professional tip: Operate in batches as much as possible. One-time authorization, full repayment, and withdrawal. Sporadic transactions increase fuel costs and increase the possibility of missing certain steps.

If you only hold aUSD on an exchange or a decentralized exchange

If you have not cast aUSD yourself, you will likely not be able to redeem it as XAU on the Alloy platform. Your choice looks more like a standard exit path:

Convert aUSD to USDT or USDC on a decentralized exchange with proven liquidity and sufficient depth; use a centralized exchange that still supports aUSD spot trading pairs; consider over-the-counter trading desks if you have a large trading volume and want to get quotes that do not impact the market.

Pay attention to the price. aUSD fell below the pegged price under pressure. As the deadline approaches, if liquidity decreases, the slip point may appear quickly.

Comparison of exit paths

Decentralized exchange: The advantages are self-preservation and instant execution; the disadvantages are slippery points and MEV risks, and authorization is required; suitable for small and medium-sized transactions, and you have verified the trading pool.

Centralized exchange trading: The advantage is that if the trading pair is active, the depth of the order book will be good; the disadvantage is that there is delisting risk and withdrawal time; it is suitable for medium and large-scale transactions and has faster pricing.

OTC trading: The advantage is that customized quotations have little market impact; the disadvantage is that due diligence is required by counterparties; it is suitable for large amounts of money and requires precise execution.

Professional tip: Always match tokens by contract address rather than token symbol. aUSD is styled, please find the exact address displayed on the Ethereum browser.

Costs, fuel costs and timing

You need ETH to pay for fuel bills. Redemptions and repayments can mean two to four transactions, depending on the authorization. If you need to purchase additional aUSD, you will need more fuel bills to exchange.

Track fuel costs and plan during off-peak hours if possible. Deadlines aggregate transaction volume.

Reserve some ETH as a secure buffer to retry transactions. There is nothing worse than running out of fuel in the middle of an operation.

Use a reasonable slip point when redeeming on a decentralized exchange. You want the transaction to be successful, but you don't want to pay too high a price.

Professional tip: Authorize aUSD in advance for the exact amount you plan to repay, rather than unlimited authorization. This takes one more click, but limits exposure if you encounter malicious contracts.

On-chain reality check: supply, prices and liquidity

It can be helpful to understand what environment you are exiting. The token supply of aUSD is approximately 50 million, with 82 holders, and the chain listing value is slightly less than US$50 million. For a token of this size, this is a small holder base that can amplify price fluctuations when people rush to exit.

On the market tracker, the circulating supply is close to 50 million, with a market value of approximately US$50 million, and it also marks the historical low of US$0.9698 on June 30, 2026. Small differences between on-chain snapshots and aggregator estimates are normal, as prices fluctuate depending on the method.

During the closing process, please assume that the spread will widen. Don't wait until the last minute to find out that your trading volume is causing prices to go against you.

Risks, scams and common errors

Phishing links: Navigation can only be carried out from the official Tether page. Don't trust any private messages, promotions, or sudden "airdrops" forms.

Wrong token: Please confirm the aUSD contract address accurately.

aUSD is not enough to repay: If you cast more than you hold, you must buy the difference to close the vault.

Fuel Cost Issue: Authorization, reimbursement and withdrawal all require fuel costs, please set aside additional budget for retry.

Waiting too long: Even if the contract is not jammed, there may be problems with the front end. Don't be the one who gets stuck at the last moment.

Blind unlimited authorization: Authorizes only the amount you need, especially on contracts you are unfamiliar with.

Professional tip: After the operation is complete, use the Rights Manager to check the token authorization and revoke any authorizations you no longer need.

What will happen after September 17?

According to the closure notice, platform-based redemptions will cease after September 17, 2026. The token will still exist on the chain and the secondary market may continue to trade it, but the official path to regain XAU collateral through the platform will no longer be available. If you miss the window period and you are a maker, you may be stuck holding aUSD and not being able to redeem it through the built-in path. This can be avoided, please take immediate action.

There is another nuance: XAU itself is a stand-alone product and has just been certified for Shariah compliance. Closing Alloy does not change the status of XAU; it changes your ability to use Alloy to convert between aUSD and XAU.

Frequently Asked Questions

Can any aUSD holder redeem it for XAU?

Normally not possible. Direct redemption through the platform is only available to users who open positions by depositing XAU as collateral. If you purchased aUSD in the market and do not have a vault, you will usually need to sell or redeem your aUSD rather than redeem it.

What is the exact deadline for Alloy's redemption?

The prescribed deadline is September 17, 2026. To avoid any time zone confusion or last-minute congestion, please complete your redemption days in advance. According to the public notice, platform redemption will not be available after the deadline.

How can I confirm that I am processing the correct aUSD token?

Match the contract address instead of the token symbol. On Ethereum, the contract address of aUSD is displayed on the Ethereum browser. Please verify before trading or authorizing any contracts.

What if I don't have enough aUSD to close a position?

You must obtain more aUSD to fully repay the cast amount shown in the app. Buy on a supported exchange or a decentralized exchange, then return to the platform to complete the repayment, and then withdraw XAU.

What are the network fees for redemption?

On Ethereum, ETH is required as fuel for redemption, authorization and redemption (if needed). Please reserve additional ETH for retries and confirmations, especially if the network may be congested near the deadline.

Will Alloy shutdown affect XAU?

XAUremains an independent asset. It is worth noting that Tether announced that XAU was certified for Shariah compliance on July 27, 2026, which has nothing to do with Alloy's closure. What ends is just the platform path to convert between aUSD and XAU.

What will happen to aUSD after September 17?

Tokens will still exist on the chain and the market may continue to trade, but redemption through the Alloy platform will stop. If you are a maker who has not closed a position, you may lose a direct way to regain XAU collateral.