Tether has unveiled a new omnichain version of its gold-backed stablecoin, XAUt, in collaboration with the TON Foundation. The token, called XAUt0, is built on LayerZero’s Omnichain Fungible Token (OFT) standard, enabling seamless transfers across blockchains without requiring wrapping or intermediary chains.
The move marks a strategic step for Tether as it looks to broaden the accessibility of its gold-pegged digital asset across multiple ecosystems, starting with The Open Network (TON).
From Ethereum to Omnichain: XAUt Goes Cross-Chain
Previously limited to the Ethereum blockchain, the original XAUt is the largest gold stablecoin by market cap, currently valued at over $832 million, according to CoinGecko. It narrowly leads Paxos’s Pax Gold (PAXG), which stands at $811 million as of June 2.
With the omnichain XAUt0, Tether aims to replicate the success of USDT0, its cross-chain dollar stablecoin launched across Optimism’s Superchain. USDT0 currently operates on a multichain network of at least eight blockchains, offering a precedent for XAUt0’s potential scalability.
Backed by Gold, Stored in Swiss Vaults
Each XAUt token represents one troy ounce of physical gold, backed by more than 7.7 tons of bullion held in Swiss vaults, according to Tether’s Q1 2025 attestation report. The same level of transparency and asset backing is expected for the newly launched XAUt0.
The asset’s stability and appeal have grown alongside rising interest in gold amid global economic uncertainty.
Gold’s 2025 Surge Boosts Stablecoin Appeal
Gold has seen a significant rally in 2025, spurred by ongoing global trade wars and broader economic instability. As of May 30, gold was trading at $3,304 per ounce, up 29.5% year-over-year from $2,327 in 2024.
Gold ETFs have also recorded strong performances, with the top eight ETFs by assets up more than 25% year-to-date, highlighting renewed investor interest in safe-haven assets.
Stablecoins vs ETFs: A New Kind of Gold Competition
With the launch of XAUt0, Tether is positioning its omnichain gold token as a digital-age competitor to traditional gold investment vehicles like ETFs. The token offers 24/7 accessibility, programmability, and the potential for integration into DeFi applications, which could appeal to crypto-native investors seeking gold exposure.
As the race to digitize gold intensifies, Tether’s XAUt0 may mark a turning point in how investors interact with the world’s oldest store of value.
