Tether Launches XAUt0: An Omnichain Gold Stablecoin on the Network $TON
Tether, the company behind the world's largest stablecoin (USDT), has made a strategic move in the market for digital assets backed by precious metals with the launch of XAUt0, an omnichain version of its gold-backed stablecoin (XAUT) on The Open Network (TON).
Innovation in Gold Stablecoins
XAUt0 represents a significant advancement in gold tokenization, built on LayerZero's Omnichain Fungible Token (OFT) standard. This technology allows the transfer of tokens between different blockchains without the need for bridges or wrappers, solving one of the major interoperability issues in the crypto space.
The token will compete directly with:
- Other gold-backed stablecoins like Pax Gold (PAXG)
- Traditional gold investment instruments like ETFs
- Physical gold storage methods
Key Features of XAUt0
1. Physical backing: Each XAUt0 token represents one troy ounce of physical gold stored in a Swiss vault. Tether reports holding more than 7.7 tons of gold backing XAUT.
2. Omnichain: Unlike XAUT (available only on Ethereum), XAUt0 can operate on multiple blockchains thanks to LayerZero technology.
3. Integration with Telegram: By launching on TON (the blockchain linked to Telegram), millions of users will easily access tokenized gold through the Wallet on Telegram.
4. Physical redemption: Holders can redeem their tokens for physical gold, combining the best of digital and traditional assets.
Context of the Gold Market
The launch comes at a time of strong appreciation in gold prices, which reached USD 3,304 per ounce on May 30, 2025, a 29.5% increase in 12 months. This growth is attributed to:
- Global economic uncertainty
- Ongoing trade wars
- Search for safe-haven assets by investors
Gold ETFs have also experienced significant gains, with the top eight funds showing increases of over 25% so far this year.
Tether's Strategy in Real Assets
The launch of XAUt0 follows the model of USDT0, the omnichain stablecoin backed by Tether dollars, which has already reached a market capitalization of $1.3 billion and is available on ten blockchains.
This initiative is part of a broader strategy by Tether to tokenize real-world assets, which includes:
1. Alloy (aUSDT): Overcollateralized stablecoin with XAUT but pegged to the dollar, functioning as a synthetic dollar.
2. Tokenization platform: To be launched by the end of 2025 for various real assets.
3. Multichain expansion: To increase the utility of its stablecoins in DeFi.
Advantages over Traditional Gold Investments
Tether Gold (in both versions) offers several advantages over conventional methods:
- No physical storage costs
- Instant and borderless transfers
- Divisibility (you can buy fractions of an ounce)
- Integration with DeFi: Can be used as collateral in lending protocols
- Transparency: Publicly audited reserves
Competence in Space
XAUt0 enters a market where Pax Gold (PAXG) from Paxos is its main competitor, although with a significantly lower market capitalization ($11 million vs. $832 million for XAUT).
Tether's differential advantage seems to be:
- Greater scale and liquidity
- Integration with popular ecosystems like Telegram
- Omnichain focus from launch
Outlook and Risks
Analysts see potential in this stablecoin for:
- Attracting new users to cryptocurrencies through Telegram
- Providing a hedge against inflation
- Serving as a bridge between traditional and decentralized finance
However, like all investments in crypto assets, it carries risks:
- Not regulated
- May not be suitable for retail investors
- Possibility of losing the entire investment
To Conclude...
The launch of XAUt0 marks an important milestone in the evolution of stablecoins, combining the safe-haven value of gold with the flexibility of modern cryptocurrencies. By choosing TON as the initial blockchain, Tether bets on mass adoption through Telegram, while omnichain technology paves the way for true interoperability between ecosystems.
This move solidifies Tether not just as a leader in traditional stablecoins but as a pioneer in the tokenization of real assets, a sector that promises significant growth in the coming years.
