According to the latest reports, Tether, the company behind the industry’s largest stablecoin USDT, has announced the launch of XAUt0, a gold-backed stablecoin deployed on The Open Network (TON). Built on top of the Omnichain Fungible Token (OFT) standard by LayerZero, XAUt0 allows users to hold and transfer gold with the same ease as digital tokens, bringing real-world financial weight into Telegram’s expansive ecosystem.
The announcement was first shared by the unified liquidity protocol USDT0. XAUt0 will be accessible directly via Telegram’s native wallet interface, connecting over 900 million global Telegram users to tokenized gold in a way never seen before.
USDT0 wrote in a June 3 announcement;
“XAUt0 offers the best of both worlds: a timeless hedge against inflation, delivered with the flexibility and freedom that modern finance demands.”
XAUt0’s Foundations: Gold Meets Interoperability
XAUt0 is a derivative of Tether Gold (XAUt), which was originally launched in January 2020. Each unit of XAUt represents one troy ounce of physical gold stored in a Swiss vault controlled by Tether. The newly launched XAUt0 token maintains a strict 1:1 backing with that same gold standard, but now adds multi-chain compatibility by using LayerZero’s OFT framework.
This architecture allows XAUt0 gold-backed stablecoin to move natively across blockchains, including TON, without wrapping or bridges. That flexibility removes friction from interoperability, a chronic pain point for many tokenized asset platforms.
“The OFT standard ensures seamless movement of assets across different chains,” Tether CTO Paolo Ardoino said in a prior interview. “That’s vital when you’re dealing with real assets like gold. Any glitch or wrapping failure risks undermining trust.”
A Gold Standard for a Growing Ecosystem
From hosting mini apps and bots to integrating the TON-based self-custody wallet, Telegram’s influence in Web3 is accelerating. The TON Foundation confirmed that the Telegram Wallet Bot now supports both USDT and XAUt0, and plans to further embed financial tools into the messaging platform.
Tether’s choice of TON as the first deployment chain for XAUt0 enforces the trend. With Telegram acting as a distribution channel.
“In 2020, Tether Gold laid the groundwork for on-chain real-world assets,” USDT0 noted. “Now with XAUt0, adoption is rapidly accelerating, thanks to platforms like TON that bring this vision to a wider audience.”
Why Gold? Timing Matters
The launch of XAUt0 gold-backed stablecoin also coincides with a surging gold market. As of early June 2025, gold prices reached $3,304 per ounce, according to TradingView data. This represents a 29.5% increase over the past 12 months, driven by renewed global inflation concerns, monetary policy volatility, and geopolitical tensions, including fresh U.S.-China trade disputes.
Tether is clearly leaning into that momentum. By offering a digital instrument fully backed by gold, accessible directly in a mobile app with no middlemen, it’s giving retail and institutional users alike a safe-haven alternative with the mobility and programmability of blockchain.
A DeFi-Ready Asset With Real Weight
What truly differentiates XAUt0 gold-backed stablecoin from similar offerings is its DeFi compatibility. By using the OFT standard, XAUt0 can be integrated into lending platforms, liquidity pools, and collateral protocols across supported chains. That means users can lend or borrow against real gold, without dealing with custodial lockups or slow settlement layers.
USDT0 emphasized this potential, noting that the protocol “connects gold to decentralized finance,” unlocking use cases like yield farming, derivatives, and on-chain credit lines, all underpinned by the stability of gold.
Already, reports claim discussions are underway about bringing XAUt0 gold-backed stablecoin into decentralized exchanges (DEXs) and collateralized lending platforms operating on TON and other LayerZero-compatible chains.
Conclusion
More than $500 million worth of Tether Gold (XAUt) is already in circulation, based on reports. With XAUt0’s multi-chain deployability and Telegram’s wallet as a delivery vehicle, analysts expect that figure to rise quickly.
Experts say the rollout of XAUt0 gold-backed stablecoin is a natural evolution of asset tokenization. What Tether is doing here isn’t just issuing a stablecoin, it’s extending the financial perimeter of DeFi into real-world asset classes.
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FAQs
What is the XAUt0 gold-backed stablecoin?
XAUt0 is a new stablecoin launched by Tether on The Open Network (TON), backed 1:1 by physical gold. It leverages LayerZero’s OFT standard to move seamlessly across blockchains.
How does XAUt0 differ from Tether Gold (XAUt)?
While both are backed by gold, XAUt0 is designed for omnichain interoperability, allowing users to transfer value across multiple blockchains without wrapping or bridges. XAUt is a single-chain token on Ethereum and Tron.
Can Telegram users access XAUt0 gold-backed stablecoin directly?
Yes. Through the Wallet Bot integrated into Telegram, users can buy, send, and store XAUt0 directly from the chat interface without leaving the app.
Is XAUt0 truly backed by physical gold?
Yes. Tether has confirmed that each XAUt0 token is backed by one troy ounce of physical gold held in Swiss vaults, with full reserves and transparency policies aligned with its original XAUt issuance.
Will XAUt0 be used in DeFi applications?
Yes. XAUt0’s use of the OFT standard makes it compatible with DeFi platforms across multiple chains, enabling lending, borrowing, and trading functionalities backed by real-world gold.
Glossary
Stablecoin – A digital asset pegged to a real-world asset like fiat currency or commodities to maintain price stability.
Tether Gold (XAUt) – A token launched by Tether in 2020 that represents ownership of physical gold stored in Swiss vaults.
XAUt0 – The omnichain, gold-backed derivative of XAUt, launched on TON and built using LayerZero’s OFT standard.
OFT (Omnichain Fungible Token) – A token standard created by LayerZero for seamless asset transfers across multiple blockchains without bridges or wrappers.
TON (The Open Network) – A decentralized layer-1 blockchain originally developed by Telegram, now used for hosting apps, tokens, and wallets within the Telegram interface.
USDT0 – A unified liquidity protocol supporting omnichain versions of Tether’s stablecoins, including USDT and XAUt0.
Sources
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