Tether Unleashes Revolutionary Omnichain Gold Stablecoin on TON

Get ready for a significant development in the world of stablecoins! Tether, the issuer behind the largest dollar stablecoin, is expanding its reach in the precious metals market. They’ve just launched an exciting new version of their gold-backed stablecoin, XAUt, on The Open Network (TON). This move introduces an Omnichain Gold Stablecoin, XAUt0, aiming to make gold ownership on the blockchain more accessible than ever.

What is Tether’s XAUt0 on TON?

Tether, in collaboration with the TON Foundation, has debuted an Omnichain version of its existing gold stablecoin, XAUt. This new token, dubbed “XAUt0,” is built using LayerZero’s Omnichain Fungible Token (OFT) standard. What does this mean for you?

• Seamless Transfers: XAUt0 can be transferred across different blockchains without the need for complex wrapping processes or intermediary chains.
• Expanded Accessibility: Bringing XAUt to TON opens it up to a new ecosystem of users and applications.
• Direct Competition: XAUt0 is set to compete directly with other digital gold assets and traditional investment instruments like Gold ETFs.

This launch mirrors Tether’s previous deployment of USDT0, a crosschain version of their USDt stablecoin, across Optimism’s Superchain ecosystem. It signals Tether’s strategic push towards greater interoperability for its assets.

Understanding XAUt: The Gold Standard in Stablecoins

Before XAUt0, there was just XAUt. This token has already established itself as a leader in the digital gold space:

• Market Leader: With a market capitalization exceeding $832 million (as of early June), XAUt is the largest gold stablecoin by market cap, slightly ahead of competitors like Paxos’s Pax Gold (PAXG) at around $811 million.
• Physical Backing: Each XAUt token is backed by one fine troy ounce of physical gold. According to Tether’s attestations, they hold over 7.7 tons of gold in a Swiss vault to back the circulating supply.
• Current Availability: The original XAUt token is primarily available on the Ethereum blockchain. The launch of XAUt0 on TON is a significant expansion of its reach.

Why Gold and Why Now?

Gold is widely recognized as a safe-haven asset, often sought after during times of economic uncertainty. The year 2024 (referenced as 2025 in the original text) has seen a notable appreciation in gold prices, partly driven by global economic concerns and trade tensions.

• Price Performance: Gold saw a substantial price jump, increasing by nearly 30% in the 12 months leading up to May 2024.
• ETF Gains: Gold exchange-traded funds (ETFs), a popular way for investors to gain exposure to gold, have also experienced significant year-to-date gains, with some top funds seeing increases over 25%.

By bringing an Omnichain Gold Stablecoin like XAUt0 to more networks, Tether is positioning its digital asset to compete directly with these traditional and crypto-native gold investment options, offering potentially greater liquidity and ease of transfer.

How Does Omnichain Technology Benefit XAUt0?

The integration of LayerZero’s OFT standard is a key feature of XAUt0. Traditional methods of moving tokens between blockchains often involve ‘wrapping,’ which creates a synthetic version of the asset on the new chain and can introduce complexities or risks. Omnichain technology aims to eliminate this, allowing the native token itself to exist and move across multiple chains seamlessly. This could improve user experience and developer flexibility on the TON network and beyond.

Conclusion: A Golden Opportunity on TON?

Tether’s launch of the Omnichain Gold Stablecoin, XAUt0, on TON is a strategic move that enhances the accessibility and interoperability of their gold-backed asset. By leveraging Omnichain technology and expanding beyond Ethereum, Tether is directly challenging both crypto competitors like PAXG and traditional gold investment vehicles. As the crypto market matures and seeks diversification, a readily transferable, physically backed Gold Stablecoin on growing networks like TON presents an intriguing option for investors.