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

1. 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.

1. 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.

1. 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.

1. 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

1. Enhanced Accessibility
   XAUt0 reduces barriers, allowing users global, instant access to tokenized gold on multiple chains.

1. 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.

1. Hedge vs Traditional Systems
   With macroeconomic volatility and inflation fears, gold-backed tokens breed investor confidence in on-chain stability.

1. 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.