Stablecoin Goddess Tether Announces Partnership with This Altcoin! Here are the Details

One of the largest stablecoin issuers in the world, Tether, has launched the multichain version of the gold-backed stablecoin XAUt, called XAUt0, as part of its strategy to expand access to digital gold in collaboration with the TON Foundation.

Tether and the TON Foundation Launch XAUt0

The new token was developed using LayerZero's Omnichain Fungible Token (OFT) standard. With this structure, XAUt0 can be transferred to other networks without the need for wrapping ( or third-party bridge protocols.

This technical development resembles the step taken by Tether with its previously launched multi-blockchain supported dollar stablecoin USDT0.

The first launch network of XAUt0 was The Open Network )TON(. TON, which was initiated by Telegram but later became independent, has rapidly grown into a blockchain ecosystem, especially with the large user base of the messaging application.

Tether's move aims to expand DeFi applications on the TON network and promote peer-to-peer )P2P( payments among Telegram users.

The launch of XAUt0 on TON came after Tether launched USDt on TON last April and significantly expanded the stablecoin infrastructure of the blockchain. This step coincided with a rapid increase in digital interest in gold during a time of rising economic uncertainties.

XAUt0 is currently drawing attention as the cross-chain version of the original XAUt token, which is only available on Ethereum and has a market value exceeding 832 million dollars. Its closest competitor, the Paxos-supported PAXG, has approximately 811 million dollars in circulation.

Each XAUt token is backed by a troy ounce of physical gold held in a vault in Switzerland. Tether announced in its attestation report for the first quarter of 2025 that it has a gold reserve of 7.7 tons.

In this period when gold prices have reached record levels due to geopolitical tensions and the search for safe havens, Tether's XAUt0 initiative aims to strengthen its position against both traditional gold ETFs and on-chain competitor projects.

Tether has not yet made a clear statement regarding which blockchains, besides TON, will support XAUt0. However, there is a wide potential for integration thanks to the LayerZero infrastructure.

*This is not investment advice.

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