Tether’s Gold Stablecoin Expands Reach with TON Blockchain Launch

Tether Launches Gold-Backed Omnichain Stablecoin on TON Blockchain

Can the new omnichain gold-based stablecoin by Tether, XAUt0, reshape the yellow metal investment during uneasy economic times? It is thus the omnichain variation of the Tether gold stablecoin, and has been in development with TON Foundation, trying to enhance how the yellow metal is accessed and moved from one blockchain ecosystem to another.

Tether and TON Join Forces for Rollout

Tether and the TON Foundation have thus joined forces to modify the advanced omnichain framework onto The Open Network for their tokenized the yellow metal product. The new token, or layer-zero of XAUt0, conforms to the Omnichain Fungible Token (OFT) standard, enabling transfers of gold-backed tokens seamlessly across multiple blockchains without wrapping issues or middlechains.

This move is quite strategic in that the same method as that used for USDT0—the omnichain of Tether’s dollar-backed stablecoin being exploited across the single-sided multichain Ethereum Layer-2 ecosystem named Optimism’s Superchain—is being replicated here. Thus, by doing so, this would be able to swiftly grow its network presence across any network supported by LayerZero, thereby escaping restrictions besetting on it.

What is XAUt0 and How Does It Differ from XAUt?

While XAUt is the largest yellow metal-backed stablecoin. With a market cap of $829 million per CoinMarketCap, it is presently limited to the Ethereum blockchain. Each token represents one troy ounce of screened the yellow metal, secured in a Swiss vault, as per the Q1 2025 attestation conducted by Tether.

The new omni chain deployment, therefore, improves upon utility and flexibility with omnichain capabilities. This means gold-backed value can be transferred in real time across separate blockchain networks on behalf of holders, hence further enhancing liquidity, accessibility, and uses for both investors and developers.

Competing with Paxos and Traditional Gold ETFs

The gold stablecoin sphere remains competitive. Paxos's Pax Gold (PAXG) trails XAUt by its market cap of $809 million. But the real competition could be traditional yellow metal ETFs.

At the time of writing, the yellow metal prices rose by 45% YoY to $3386 an ounce from $2335 amid growing economic uncertainties and global trade tensions.

Looking at the yellow metal ETFs, they have already delivered 44.50% YTD gains attracting significant attention from investors.

Source: TradingView

With the new omni chain deployment, Tether challenges such instruments as it offers the portability, transparency, and programmable nature of blockchain technology wrapped with gold stability.

Why TON Blockchain?

Tether had already deployed its USDt stablecoin on TON in April 2024, indicating a growing commitment to the network. TON’s high-speed and user-friendly blockchain architecture allowed it to become omnichain-oriented, making it an unmatched option in the launch of the new omni chain deployment.

Choosing TON also suits the larger trend in the industry: deviating from Ethereum-centric ecosystems and moving to multi-chain compatibility to value faster and efficient financial applications.

Will XAUt0 Redefine Digital Gold Investment?

More so at a time when gold is finding its footing again as a safe asset, while blockchain is changing notions of ownership and transferability. The all-important new omnichain deployment may bridge the divide between traditional gold exposure and the emerging Web3 economy: toward crypto-native investors and legacy market participants looking for decentralized alternatives.

As LayerZero's OFT standard gains adoption, and TON's network continues to grow, the new omni chain deployment is set to be a significant contender in the tokenized commodity markets.