Tether announced a partnership with the TON Foundation to debut an omnichain version of its gold stablecoin XAUt (XAUT) on The Open Network (TON), in an effort to expand the token across ecosystems.
The new token, “XAUt0,” was built on LayerZero’s Omnichain Fungible Token standard, which allows tokens to be transferred through blockchains without wrapping or middlechains.
XAUt, the token’s non-omnichain version, is the largest gold stablecoin by market capitalization, with over $832 million, according to CoinGecko. It is closely followed by Paxos’s Pax Gold (PAXG), which holds a market cap of $811 million as of June 2. XAUt is available only on the Ethereum blockchain.
Tether has more than 7.7 tons of physical gold backing the XAUT stablecoin, according to the company’s Q1 2025 attestation report. Each XAUt token represents one troy ounce of the global asset, which is reportedly being stored in a Swiss vault.
XAUt0 may mimic Tether’s rollout of USDT0 (USDT0), a crosschain dollar-backed stablecoin deployed across Optimism’s Superchain, an ecosystem that has at least eight blockchains. USDT0 is a bridged token of Tether’s USDt (USDT), the company’s dollar-backed stablecoin.
Tether also deployed USDt onto the TON blockchain in April 2024.
Related: Tether launches gold-backed, US dollar stablecoin Alloy
Gold rises backed by economic uncertainty
Gold is considered a safe-haven asset and, in 2025, has experienced a steep appreciation in price due to economic uncertainty, particularly due to ongoing global trade wars.
Gold’s price was at $3,304 per ounce on May 30, up $2,327 from a year ago — a 29.5% jump in 12 months. In addition, Gold exchange-traded funds (ETFs) have experienced significant gains year-to-date, with the eight top funds by total assets experiencing increases of more than 25%.
Gold ETFs are a popular way to trade the asset. Tether’s omnichain gold token will compete with similar ETFs and other traditional gold investment instruments.
Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
