Tether Introduces XAUt0, an Omnichain Gold-Backed Stablecoin, Now Live on TON

Tether has partnered with the TON Foundation to launch XAUt0, an omnichain version of its gold-backed stablecoin, on The Open Network (TON).

Designed to provide an inflation-resistant digital asset with the convenience of blockchain, XAUt0 offers exposure to physical gold through a fully interoperable token standard.

Built on LayerZero’s Omnichain Fungible Token (OFT) protocol, the token allows seamless transfers across blockchains without requiring bridges, wrapping, or middlechains.

XAUt0 is the latest evolution of Tether’s XAUt, the leading gold-backed stablecoin by market cap, currently almost at $830 million, according to CoinMarketCap.

Previously confined to Ethereum, XAUt now extends its reach with XAUt0—broadening access to tokenised gold across multiple ecosystems.

By comparison, Paxos’s Pax Gold follows closely behind, with an $811 million market cap.

This deployment is part of Tether’s broader multi-chain strategy, echoing the rollout of USDT0—its omnichain dollar-backed stablecoin deployed across Optimism’s Superchain and other networks.

XAUt0 on TON will maintain the same backing as its predecessor: each token represents one troy ounce of gold, certified by the London Bullion Market Association and held in Swiss vaults.

Tether currently holds more than 7.7 tons of physical gold, according to its Q1 2025 attestation.

The move also deepens Tether’s integration with TON, which already hosts a native version of USDT.

This growing ecosystem benefits from added liquidity and investor interest, especially after TON recovered to $3.22 following a brief network outage.

Tether’s Gold-Backed XAUT Token Sees Growing Demand for Tokenised Metals

Tether’s original gold-backed token, XAUt, launched in 2020 during a surge in gold prices, offering fractional ownership and the option for physical delivery to Swiss vaults.

Now, with the introduction of XAUt0 on TON, Tether is expanding the token’s reach across chains while deepening TON’s DeFi footprint.

Already home to more than 928 million USDT tokens, TON continues to outpace many Layer 1 and Layer 2 networks in native stablecoin usage.

The addition of tokenised gold enhances its total value locked and introduces new opportunities for trading and collateralisation.

XAUt0 is transferable across blockchains via automated mint-and-burn bridging, making it usable as DeFi collateral or as a digital hedge against inflation.

While the tokens remain pseudonymous and borderless, the underlying gold—7.7 tons, per Tether’s latest attestation—is stored under jurisdictional constraints in Switzerland.

As Telegram’s blockchain ecosystem works to align with US compliance standards and attract institutional capital, tokenised gold fits into a broader narrative: the blending of crypto’s hard-money ethos with growing demand for real-world assets.

In 2025, gold and Bitcoin have reestablished their positive price correlation, underscoring gold’s renewed appeal as both a store of value and a speculative asset.

With over $2.1 billion now tied up in tokenised precious metals, XAUt0 represents both a continuation of crypto’s evolution—and a challenge to traditional gold markets.