Tether, the issuer of the world’s most widely used stablecoin, has announced the launch of a cross-chain version of its gold-backed token, XAUt, on The Open Network (TON), aiming to broaden the token’s availability across multiple blockchain ecosystems.
The newly introduced token, XAUt0, is developed using LayerZero’s Omnichain Fungible Token (OFT) standard. This technology facilitates seamless token transfers across different blockchains without the need for wrapping or intermediate bridging, enhancing interoperability. XAUt0 follows the blueprint of Tether’s USDT0, an omnichain iteration of the USDt stablecoin, which operates on at least eight blockchains within the Optimism Superchain.
Expanding Gold-Backed Stablecoin Reach
Until now, Tether’s XAUt was confined to the Ethereum blockchain. As of June 2, CoinGecko data shows XAUt leads the gold-backed stablecoin market with a capitalization exceeding $832 million, closely followed by Paxos’ Pax Gold (PAXG), which holds a market cap of $811 million.
According to Tether’s Q1 2025 attestation report, XAUt tokens are fully backed by 7.7 metric tons of physical gold, with each token representing one troy ounce securely stored in Swiss vaults. The launch of XAUt0 seeks to preserve this backing while enabling greater accessibility and cross-chain compatibility within decentralized finance (DeFi) environments.
Strengthening Tether’s Partnership with TON Foundation
This release signifies an expansion of collaboration between Tether and the TON Foundation. Tether previously introduced USDt on the TON blockchain in April 2024. The arrival of XAUt0 underscores Tether’s broader strategy to deploy its stablecoin offerings across diverse blockchain platforms to capture a wider user base.
By leveraging cross-chain token standards, Tether aims to position XAUt0 as a versatile alternative to conventional gold investment vehicles, such as exchange-traded funds (ETFs), which have experienced strong performance throughout the year.
Gold’s Rising Appeal Amid Economic Uncertainty
Gold prices have surged in 2025, fueled by ongoing economic uncertainty and escalating global trade tensions. On May 30, gold was trading at $3,304 per ounce, reflecting a 29.5% increase year-over-year from $2,327. Gold-backed ETFs have similarly benefited, with the eight largest funds recording gains above 25% year-to-date, according to VettaFi.
This trend reflects growing investor appetite for inflation hedges and safe-haven assets. Tether’s blockchain-native, physically-backed XAUt0 is well positioned to compete with both other digital gold stablecoins and traditional gold investment products.
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