Tether Gold (XAUt) Gets Cross-Chain Upgrade as XAUt0, Rolls Out on TON

Tether is aiming to redefine the gold standard for the digital age with its latest launch: XAUt0. This new token is a significant evolution of its existing gold-backed token, Tether Gold (XAUt).

The big idea behind XAUt0 is to offer users true ownership of physical gold while also allowing that gold to move and interact seamlessly across leading blockchains. In essence, XAUt0 brings together the trusted safety of traditional assets like gold with the operational freedom of decentralized finance (DeFi).

This launch comes at a key moment, especially as global demand for inflation-resistant assets continues to climb. With XAUt0, Tether wants gold to be more than just a store of value; it’s envisioned as a liquid, borderless, and programmable financial asset fit for the Web3 era.

XAUt0: True Digital Gold Now Goes Cross-Chain with LayerZero

Now, Tether Gold (XAUt) itself has been around since 2020. It was one of the earlier examples of a real-world asset (RWA) token, with each XAUt token backed 1:1 by physical gold securely stored in a Swiss vault. Each token represents exactly one fine troy ounce of London Bullion Market Association (LBMA)-certified gold.

Related: Paolo Ardoino Details Tether’s ‘Perfect’ Bitcoin Strategy, $2 Billion Mining Push

So, what XAUt0 does is build directly on this foundation. It uses LayerZero’s Omnichain Fungible Token (OFT) standard. This underlying technology is what allows XAUt0 holders to move their gold-backed assets between different blockchains easily and securely, all without affecting the token’s fundamental physical backing.

Beyond just cross-chain functionality, XAUt0 is designed to offer a unified liquidity layer. This capability unlocks higher capital efficiency and better composability. That, in turn, enables easier integration of the tokenized gold into various DeFi platforms, lending pools, and payment systems. Lorenzo R., a co-founder of USDT0 and Everdawn Labs, highlighted this, emphasizing that this innovation effectively makes gold “truly borderless and programmable” within Web3 ecosystems.

First Stop TON: Bringing Tokenized Gold to Telegram’s Millions

The very first integration for XAUt0 is happening on The Open Network (TON). This is a strategic move, as it brings tokenized gold directly to millions of users within the Telegram ecosystem. This access is facilitated through Wallet, a native feature within the Telegram messaging app. Andrew Rogozov, founder of The Open Platform (which develops TON-based applications), believes this step significantly democratizes access to high-value digital assets like gold.

Related: Why Did Tether Just Destroy Another $1.8 Billion Worth of USDT?

And even with this new digital flexibility, the option for physical redemption remains fully intact. Users can convert their XAUt0 holdings back to the original XAUt standard and then request physical delivery of their gold in Switzerland. Moreover, features like infinite divisibility of the token and 24/7 accessibility enhance its utility far beyond what traditional gold markets can offer.

Bridging Tradition and Web3 Innovation

While Bitcoin often earns the title of metaphorical “digital gold,” XAUt0 introduces actual, verifiable gold ownership onto the blockchain. It’s built to meet modern financial needs like mobility, programmability, and composability, without sacrificing the security or authenticity of the underlying physical gold.

It’s significant to note that over 7.7 tons of physical gold currently back all the XAUt tokens in circulation, reflecting a substantial market cap of around $770 million for Tether Gold.