Tether has launched XAUt0, an omnichain version of its gold-backed stablecoin, on The Open Network (TON) blockchain through its cross-chain protocol USDT0. This deployment marks Tether’s latest effort to expand access to tokenized commodities within messaging app Telegram’s ecosystem, which boasts over 900 million users globally.
The new XAUt0 token leverages LayerZero’s Omnichain Fungible Token standard, enabling seamless transfers across multiple blockchains without requiring wrapped assets. This follows Tether’s April 2024 integration of USDt on TON, which saw $580 million in inflows within eight weeks according to industry reports.
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Tether’s Gold Standard Expansion
The original XAUt token holds $832 million in market capitalization, backed by 7.7 tons of physical gold stored in Swiss vaults. Key advantages of XAUt0 include:
- 24/7 trading availability vs traditional gold markets’ limited hours
- Fractional ownership down to 0.000001 XAUt0
- Physical redemption options through partner facilities in Switzerland
TON Blockchain’s Strategic Role
The Open Network’s integration positions Telegram as a crypto payments hub, with TON’s native token gaining 214% year-to-date. Andrew Rogozov of The Open Platform noted: “This collaboration brings inflation-resistant assets to regions facing currency instability through familiar messaging interfaces.”
Market Impact and Competition
Gold-backed stablecoins have surged 89% in total value since 2023:
| Token | Market Cap | Blockchain |
|---|---|---|
| XAUt | $832M | Ethereum |
| PAXG | $811M | Ethereum |
Analysts suggest XAUt0 could capture 35-40% of Paxos’ market share within 12 months due to its cross-chain functionality.
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Glossary
- Omnichain
- A system enabling assets to operate natively across multiple blockchains without bridging or wrapping.
- Stablecoin
- A cryptocurrency pegged to stable assets like fiat currency or commodities to minimize price volatility.
- Tokenization
- The process of converting real-world assets into digital tokens on a blockchain for improved liquidity and accessibility.
