Tether has introduced XAUt0, a gold-backed omnichain token, on The Open Network (TON), aiming to strengthen digital commodity offerings and enhance cross-chain interoperability. This initiative is seen as a timely response to growing global interest in tokenized gold and marks a strategic advancement for both Tether and the TON blockchain.
XAUt0 is powered by LayerZero’s Omnichain Fungible Token (OFT) standard, enabling the asset to move seamlessly between blockchains without the need for wrapping mechanisms or intermediary chains. The token serves as an omnichain extension of Tether’s existing XAUt token, which is pegged to one troy ounce of physical gold stored in a Swiss vault and remains the largest gold-backed stablecoin by market capitalization.
Advancing Digital Gold Mobility
The launch of XAUt0 on TON comes shortly after Tether deployed its USDt stablecoin on the same network. This dual integration broadens the blockchain’s use cases and targets Telegram’s expansive user base, thereby positioning TON as a compelling platform for decentralized finance (DeFi) activities and peer-to-peer transactions involving real-world assets.
The deployment also reflects broader trends in the commodities market, with gold recently achieving record highs and delivering a 30% year-over-year price gain. These conditions have fueled renewed interest in both physical and tokenized gold, with inflows into top-tier gold exchange-traded funds (ETFs) mirroring the momentum. Tether’s move to enhance the accessibility and mobility of gold-backed tokens across multiple chains appears to be a strategic response to these macroeconomic shifts.
TON’s Growing Role in Asset-Backed Innovation
The integration of XAUt0 is expected to strengthen TON’s standing in the Web3 ecosystem as a destination for asset-backed token activity. The blockchain, developed with compatibility for Telegram and known for its user-friendly infrastructure, has increasingly attracted projects looking to bring tangible value to digital assets.
By offering a natively omnichain gold stablecoin, Tether is not only increasing the reach of its product line but also directly challenging the traditional financial system’s grip on commodity-backed instruments, such as gold ETFs. This move could shift more capital from legacy gold investment vehicles toward on-chain equivalents, particularly among digitally native investors.
Future Expansion and Ecosystem Impact
Tether is planning further cross-chain support for XAUt0 in the near future, which may lead to broader adoption across a variety of DeFi platforms and blockchain environments. The goal is to provide users with enhanced liquidity and accessibility to gold-backed assets, while reducing the technical barriers often associated with multi-chain operations.
The integration also complements TON’s broader mission of expanding real-world use cases through its Telegram integration and growing ecosystem. As more digital commodities become available in a decentralized and omnichain format, protocols like TON could play a central role in reshaping how traditional assets are stored, transferred, and utilized.
With the rollout of XAUt0, Tether and TON are aligning around a shared vision of making real-world assets more accessible in the Web3 space, and creating a competitive edge against both centralized financial institutions and other blockchain networks.
