🔥Tether has just announced the launch of XAUt0, an omnichain gold stablecoin on the TON platform, in collaboration with the TON Foundation. This token is built according to the Omnichain Fungible Token standard of LayerZero, allowing movement between blockchains without the need for bridge mechanisms or token wrapping.

XAUt0 is an extended version of XAUt, which currently is the largest gold stablecoin by market capitalization (over 832 million USD according to CoinGecko), surpassing its closest competitor Paxos Gold (PAXG) at 811 million USD. However, XAUt currently operates only on Ethereum, while XAUt0 expands cross-chain interaction capabilities.

According to Tether's Q1 2025 audit report, each XAUt and XAUt0 token is backed by real physical gold, with over 7.7 tons of gold stored in a secure vault in Switzerland. Each token is equivalent to 1 international troy ounce of gold.

The launch of XAUt0 recalls the omnichain version of the USDT0 stablecoin issued by Tether earlier, which is widely used in the Optimism Superchain ecosystem. At the same time, Tether's primary USDt stablecoin has also been deployed on the TON blockchain since April 2024.

In the context of global economic instability and escalating global trade wars, gold prices have surged from about 977 USD/ounce to 3,304 USD within a year (an increase of 29.5%). Top gold ETFs have also reported a rise of over 25% since the beginning of the year.

XAUt0 is expected to compete directly with gold ETFs by combining the stability of physical gold with the convenience and scalability of blockchain technology. This is a strategic move for Tether to strengthen its position in the market of digital assets backed by tangible assets.