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- Tether launches XAUt0, an omnichain gold-backed stablecoin, on the TON blockchain.
- XAUt0 uses LayerZero’s technology to enable seamless cross-chain transfers without intermediaries.
- The move expands access to digital gold and boosts the TON ecosystem’s activity and payment options.
Tether has introduced a new version of its gold-backed stablecoin called XAUt0. Unlike its original XAUt token, which only works on Ethereum, XAUt0 is designed to operate across different blockchains. This development comes from Tether’s partnership with the TON Foundation, aiming to make digital gold more accessible on multiple networks.
Telegram created the TON blockchain, which now governs the newly launched token. XAUt0 was crafted by developers based on LayerZero’s Omnichain Fungible Token (OFT) standard. Thus, it could interchange easily among chains without wrapping tokens or middle blockchains.
This represents a technological advancement that boosts efficiency while narrowing cost parameters for the consumer. In the past, Tether employed this very technique to issue USDT0, an omnichain variant of its ubiquitous dollar stablecoin.
XAUt0 Launch Boosts TON User Engagement
The introduction of XAUt0 on TON will further drive the activity of users within the ecosystem of this blockchain. Since its separation from Telegram, which provoked regulatory issues, TON has recorded tremendous growth.
With the introduction of XAUt, peer-to-peer payments become much simpler, particularly within the huge user base of Telegram. The new token also paves the way foroptions in decentralized finance (DeFi) applications.
This expansion enables users to use their gold-backed stablecoins for greater lending, borrowing, and trading activities, thus enhancing the possibilities on the TON network. The launch of XAUt0 coinc with Tether’s earlier this year launch of its USDT stablecoin on the TON, which already added to the blockchain’s financialp
Tether Confirms 7.7 Tons of Gold for XAUt0
XAUt0 traces its value to physical gold, with each token representing one troy ounce stored in a secure vault in Switzerland. This backing is regularly verified, with Tether’s recent report confirming 7.7 tons of gold reserves.
The original XAUt stablecoin already holds the largest market capitalization among gold-backed tokens, with over $832 million in circulation, slightly ahead of its nearest competitor. The timing of this release is notable as gold prices have risen sharply due to economic uncertainties and trade tensions.
Investors have increased their interest in gold’s role as a safe-haven asset, which has driven up the values of gold ETFs. By enabling omnichain access to tokenized gold, Tether aims to offer a digital alternative to traditional gold investments. This could attract users who want the benefits of gold ownership combined with blockchain technology.
At this time, Tether has not announced which other blockchains will support XAUt0. However, the company’s move signals a push to broaden the reach of digital gold beyond Ethereum, potentially changing how investors and users interact with precious metals in the digital age.
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