In a move aimed at bridging traditional asset backing with decentralized finance, stablecoin protocol USDT0 has launched XAUT0, a new gold-backed digital asset that builds on the foundation of Tether Gold (XAUT). This new token is debuting on the TON (The Open Network) blockchain—marking a significant push to bring tokenized gold to Telegram’s massive user base—before expanding to additional DeFi-native chains.

XAUT0 represents ownership of real gold, with each token backed by physical bars stored in secure vaults, similar to its predecessor, Tether Gold. However, the innovation with XAUT0 lies in its DeFi-oriented design, optimized for seamless integration with decentralized applications (dApps), smart contracts, and on-chain financial primitives.

“We’re building on what Tether started with XAUT, but taking it a step further by making gold not only tokenized, but also composable and programmable within DeFi,” said a spokesperson for USDT0.

Why TON?

The TON blockchain—originally developed by Telegram—has seen a resurgence in developer activity and user engagement, especially with Telegram’s 900+ million monthly active users. Launching XAUT0 on TON is a strategic move aimed at tapping into this growing user base and facilitating gold-backed payments, savings, and trading directly within Telegram-integrated wallets and apps.

“The TON ecosystem represents a major opportunity to bring real-world asset-backed tokens to a global audience,” said the spokesperson. “We believe that gold, when made as easy to transfer as a message on Telegram, can become a widely adopted store of value in emerging markets and beyond.”

Expansion Plans

Following the TON launch, USDT0 plans to expand XAUT0 to other DeFi-centric blockchains, including Ethereum Layer 2 networks, Solana, and possibly Cosmos-based chains. The focus will be on enabling cross-chain liquidity and yield-bearing opportunities through integrations with lending protocols, automated market makers (AMMs), and token bridges.

The move comes amid growing interest in real-world assets (RWAs) onchain, with gold emerging as a particularly attractive asset due to its price stability and inflation-hedging properties. With regulatory clarity around tokenized commodities slowly improving, projects like XAUT0 are positioning themselves at the forefront of this convergence between traditional finance and DeFi.

A New Standard for Tokenized Commodities?

$XauO launch underscores a broader trend of redefining stablecoins—not just as dollar-pegged instruments, but as representations of tangible assets with real utility in the crypto economy.

“Gold has always been a hedge against uncertainty. Now, with XAUT0, we’re making it a native asset of the decentralized web,” the USDT0 team added $BTC $ETH $XRP