Tether Shuts Down Alloy Gold Lending Platform in 37 Days

Crypto giant Tether is officially pulling the plug on Alloy, its gold backed lending experiment, giving users just 37 days to settle their accounts. The shutdown date is set for September 17. The platform allowed users to deposit Tether Gold and borrow a dollar tracking token called aUSDT. Minting new tokens stopped immediately after the announcement.

Despite high hopes when it launched in June 2024, the platform struggled to attract users. Recent reports showed total collateral sitting at a tiny fraction of Tether's massive overall market footprint, making the project a minor rounding error for the company. Only five active borrowers remain on the system, holding around $850,000 worth of gold collateral against their loans.

Regular holders of Tether Gold can breathe a sigh of relief because the core token is not going anywhere. The main asset remains a multi billion dollar product with healthy whale activity in recent weeks. However, the five remaining borrowers must repay their debts and reclaim their collateral before the September deadline to avoid potential complications.