Tether’s XAUt0 Redefines Gold Investment with Omnichain Launch on TON

USDT0, the unified liquidity network for Tether’s USDt stablecoin, has launched XAUt0, an omnichain version of Tether Gold (XAUt), on The Open Network (TON) blockchain.

Announced on June 2, this innovative stablecoin leverages LayerZero’s Omnichain Fungible Token (OFT) standard to enable seamless cross-chain transfers without wrapping or middlechains.

Backed by 7.7 tons of physical gold stored in Swiss vaults, XAUt0 aims to modernize gold ownership, competing with traditional gold ETFs and other gold-backed stablecoins like Paxos’s PAXG.

The launch taps into soaring gold prices and growing interest in tokenized assets, offering investors a programmable, inflation-resistant digital asset.

XAUt0: A New Era for Gold-Backed Stablecoins

XAUt0 builds on the success of Tether Gold (XAUt), the largest gold-backed stablecoin with a market cap of $832 million, slightly ahead of Paxos’s PAXG at $811 million as of June 2, 2025.

Each XAUt0 token represents one troy ounce of physical gold, certified to London Bullion Market Association standards. Unlike its Ethereum-only predecessor, XAUt0’s omnichain design allows it to move natively across blockchains, starting with TON, which integrates with Telegram’s 900 million users via its in-app Wallet.

This accessibility positions XAUt0 to capture significant market share, with analysts projecting it could challenge 35-40% of PAXG’s market within a year due to its cross-chain functionality and DeFi integration potential.

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Gold’s Surge and TON’s Strategic Role

Gold’s price has surged to $3,304 per ounce as of May 30, 2025, a 29.5% increase from last year, driven by global trade tensions and demand for safe-haven assets. Gold ETFs have seen over 25% gains year-to-date, reflecting strong investor interest. XAUt0’s launch on TON, following Tether’s USDt integration in April 2024, leverages Telegram’s vast user base to democratize access to tokenized gold.

The TON Foundation’s collaboration with USDT0 enhances liquidity, enabling 24/7 trading, fractional ownership, and DeFi applications like lending and arbitrage, setting XAUt0 apart from traditional gold investments that lack such flexibility.

Did You Know?
Tether Gold (XAUt), launched in 2020, was one of the first tokens to bring physical gold on-chain, with each token backed by a specific gold bar in a Swiss vault, verifiable through Tether’s quarterly attestations.

Competing in a Growing Digital Asset Market

XAUt0’s omnichain architecture, powered by LayerZero’s OFT standard, eliminates the need for bridges or wrapped tokens, reducing risks and fees associated with cross-chain transfers. This innovation follows USDT0’s earlier deployment across Optimism’s Superchain, which spans eight blockchains and holds $1.3 billion in supply.

With plans to expand XAUt0 to additional DeFi-focused blockchains like Berachain and MegaETH in Q3 2025, USDT0 aims to outpace competitors by offering true gold ownership with digital composability.

The token’s integration with TON’s ecosystem could drive significant adoption, particularly among retail investors seeking secure, programmable alternatives to gold ETFs.