Tether, a leading force in the stablecoin market, is expanding its reach into tokenized gold with the introduction of XAUt0 on The Open Network (TON). This strategic move signifies a deeper commitment to integrating real-world assets into decentralized finance, offering users a new avenue for digital payments and investments backed by physical gold, especially appealing to the expansive user base of Telegram.
Advanced Cross-Chain Functionality
XAUt0 represents a significant leap forward in interoperability, designed to transcend traditional blockchain limitations. By leveraging LayerZero’s omnichain technology, XAUt0 tokens can move seamlessly across various blockchain networks without the need for cumbersome bridges or “wrapped” versions. This innovative design streamlines the user experience, enhancing liquidity and accessibility for digital gold assets.
Collaboration and Market Impact
This initiative is a result of a direct collaboration with the TON Foundation, aiming to democratize access to gold-backed decentralized finance and digital payments for the vast Telegram ecosystem. It marks Tether’s second major integration with TON, following the successful launch of its USDt stablecoin earlier in April. XAUt0 builds upon Tether’s existing XAUt token, which was previously confined to the Ethereum network, transforming it into a versatile, cross-chain asset.
Each XAUt0 token is robustly backed by one troy ounce of physical gold, securely stored in Swiss vaults. According to Tether’s first-quarter 2025 report, the company maintains substantial gold reserves totaling 7.7 tons, underscoring the solid foundation of its gold-backed digital assets.
Navigating the Digital Gold Landscape
The introduction of XAUt0 comes at a time when gold prices are hovering near historical highs, driven by increasing global tensions. Tether aims to capitalize on this demand by attracting both traditional gold investors seeking digital exposure and participants within the blockchain community. While TON is the inaugural blockchain to support XAUt0, broader adoption is anticipated as its omnichain compatibility expands to other networks.
The launch also highlights the intensifying competition within the digital gold sector. Currently, Tether’s XAUt and Paxos’ PAXG hold comparable market capitalizations, valued at approximately $832 million and $811 million, respectively. This close alignment underscores the growing race for dominance in providing digitally represented physical gold to a global audience.
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