Tether Unveils XAUt0: A Cross-Chain Gold-Backed Stablecoin on TON Blockchain

Tether, the issuer of the world’s largest stablecoin USDT, has launched XAUt0, an omnichain version of its gold-backed token Tether Gold (XAUt), on The Open Network (TON) blockchain. Announced on June 2, this move expands Tether’s tokenized gold offerings, enabling seamless cross-chain transfers of physical gold ownership using LayerZero’s Omnichain Fungible Token (OFT) standard. The launch, in partnership with the TON Foundation, aims to make digital gold more accessible and versatile within decentralized finance (DeFi) ecosystems.

A New Era for Tokenized Gold

XAUt0 builds on the foundation of Tether Gold (XAUt), launched in 2020, which represents one troy ounce of physical gold stored in Swiss vaults, compliant with London Bullion Market Association standards. Unlike its predecessor, XAUt0 leverages LayerZero’s OFT standard to enable native transfers across multiple blockchains without the need for wrapping or intermediary bridges. This allows users to hold a gold-backed asset while engaging in DeFi activities like lending, trading, or arbitrage across chains.

XAUt is currently the largest gold-backed stablecoin by market capitalization. According to CoinGecko data, as of press time on June 3, XAUt has a market capitalization of approximately $827.8 million, with each token priced at around $3,357, closely tracking the spot price of gold, which has risen nearly 45% over the past year. The introduction of XAUt0 on TON, a blockchain integrated with Telegram’s 1 billion-plus user base, positions it to tap into a massive audience seeking inflation-resistant assets in a digital format.

Why TON and Why Now?

The choice of TON as the initial deployment platform for XAUt0 follows Tether’s earlier integration of USDT on TON in April, which has already contributed to the blockchain’s growing stablecoin ecosystem. TON’s high transaction throughput and low fees, combined with its Telegram integration, make it an attractive platform for expanding digital asset accessibility. The launch comes amid heightened interest in gold as a hedge against economic uncertainty, with gold prices trading near all-time highs.

Tether’s collaboration with the TON Foundation underscores its strategy to integrate tokenized assets into user-friendly platforms. XAUt0’s omnichain capability allows it to move seamlessly between TON and other supported blockchains, with plans for further chain deployments in Q3. This interoperability addresses a key pain point in DeFi, where fragmented liquidity across chains often limits asset utility.

Competitive Landscape and Future Outlook

XAUt0 enters a competitive market for tokenized gold, facing rivals like Pax Gold (PAXG) and other gold-backed tokens. Its omnichain functionality provides a distinct advantage, allowing users to leverage gold in DeFi applications across multiple chains, unlike single-chain tokens. However, its success will depend on liquidity, user trust, and regulatory acceptance.

Tether’s broader strategy also includes diversifying its offerings beyond stablecoins. The company’s recent ventures, such as Tether AI and investments in Bitcoin-focused firms like Twenty One Capital, indicate a shift toward a more institutional role in the crypto ecosystem. XAUt0’s launch aligns with this vision, positioning Tether to capture growing demand for real-world asset (RWA) tokenization.

Looking ahead, Tether plans to expand XAUt0 to additional blockchains, potentially including Ethereum, Solana, or Optimism’s Superchain, following the model of its USDT0 deployment. This could enhance its utility in DeFi and attract institutional investors seeking exposure to gold without the complexities of traditional markets.