Tether has teamed up with the TON Foundation to introduce XAUt0, an omnichain version of its gold-backed stablecoin XAUt, aiming to expand digital gold access across multiple blockchains. Built on LayerZero’s Omnichain Fungible Token (OFT) standard, XAUt0 enables seamless movement across chains without the need for wrapping or middlechain dependencies—a technical advancement similar to Tether’s earlier launch of USDT0, a crosschain iteration of its dollar stablecoin. This development is expected to enhance peer-to-peer payments for Telegram’s vast user base and stimulate activity within the TON ecosystem. Additionally, users can now utilize the stablecoin in various decentralized finance (DeFi) applications, substantially increasing their capabilities on the network. TON, initially launched by Telegram but now operating independently following regulatory challenges, has experienced rapid growth in usage. The launch of XAUt0 on The Open Network (TON) comes after Tether introduced USDt on TON in April, broadening the blockchain’s stablecoin offerings amid rising interest in tokenized gold amid economic uncertainty. XAUt0 is derived from XAUt, the world’s largest gold stablecoin by market capitalization, with over $832 million in circulation according to CoinGecko. Its nearest rival, Paxos’s PAXG, holds approximately $811 million.

Currently, XAUt is available exclusively on Ethereum. Each XAUt token is backed by one troy ounce of physical gold stored in a Swiss vault, as verified in Tether’s Q1 2025 attestation, which reported 7. 7 tons of gold in reserves. The rollout coincides with record-high gold prices, propelled by global trade tensions and increased demand for safe-haven assets. Gold has risen nearly 30% year-over-year, while leading gold ETFs have gained over 25% year-to-date, according to VettaFi data. Tether’s entry into omnichain gold tokens positions it to compete with both traditional gold ETFs and on-chain rivals in the expanding digital commodity market. The company has yet to reveal which additional blockchains will support XAUt0 in the near future.