Tether Targets Gold: Introducing XAUt0 — A Gold-backed Omnichain Token on TON
✨ Introduction
Tether has unveiled XAUt0, the omnichain version of its gold-backed stablecoin, on the TON (The Open Network) blockchain. This is a significant step in merging traditional assets with decentralized finance (DeFi), enabling seamless cross-chain gold-backed transactions.
🔍 Key Highlights
- What is XAUt0?
An omnichaIn gold-backed token built under LayerZero’s Omnichain Fungible Token (OFT) standard.
Represents 1 Troy ounce of LBMA-certified physical gold, securely stored in Swiss vaults.
- Why TON?
Tether previously issued USDT on TON and is now expanding its real-asset ecosystem.
TON offers smooth integration, strong DeFi potential, and a growing user base via Telegram.
- Market Context
XAUt (non-omnichain) is already the largest gold-backed stablecoin, boasting a ~$832 M market cap and >7.7 tons of gold backing.
Gold prices soared to ~$3,304/oz by May 2025 (+29.5% y/y), amplifying demand for tokenized gold assets.
- Advantages of Omnichain Structure
Native, cross-chain interoperability without wrapping or bridges.
Enables real-time on-chain transfers, lending, collateralization & seamless DeFi use.
🌟 Implications & Opportunities
- Enhanced Accessibility
XAUt0 reduces barriers, allowing users global, instant access to tokenized gold on multiple chains.
- Asset-Backed DeFi on the Rise
Sets a blueprint for real-world assets (gold, real estate, bonds) to go blockchain-native and interact effortlessly with DeFi.
- Hedge vs Traditional Systems
With macroeconomic volatility and inflation fears, gold-backed tokens breed investor confidence in on-chain stability.
- Strengthening the TON Ecosystem
Brownian motion in TON’s DeFi usage is sparked by this asset, accelerating TVL, usage and diversification.
🚩 Considerations & Risks
Counterparty Trust: Gold reserves are attested, not fully audited; credibility remains tied to Tether’s transparency.
Regulatory Oversight: New legislation (e.g., the U.S. Genius Act) demands clearer reserve backing—Tether must adapt to stay compliant.
Market Volatility: Though gold is stable, XAUt0 is still exposed to gold’s price swings and smart contract security issues.
✅ Final Takeaways
XAUt0 pioneers omnichain, gold-backed finance—linking real-world asset security with blockchain efficiency.
Its launch on TON aligns with Tether’s strategic play to broaden asset-tokenization across infrastructures.
For investors: XAUt0 offers a novel, liquid, and programmable form of gold exposure—global, instant, and chain-agnostic.
📌 Conclusion
Tether’s XAUt0 is more than just another token—it’s a key milestone in advancing real-world asset integration into DeFi. By enabling gold-backed tokens to move natively across chains, it redefines how value is stored and transferred in digital ecosystems. As tokenized finance evolves, XAUt0 may well serve as a benchmark for future asset digitization on-chain.