Tether, on June 2, 2025, announced a partnership with the TON Foundation to launch an omnichain version of its gold-backed stablecoin, XAUt (XAUT), on The Open Network (TON). The new token, named "XAUt0," utilizes LayerZero's Omnichain Fungible Token standard, enabling seamless transfers across blockchains. This move aims to expand XAUt's reach across various ecosystems.
XAUt currently holds a market capitalization of over $832 million, making it the largest gold stablecoin, while Paxos's Pax Gold (PAXG) holds $811 million as of June 2, 2025, according to CoinGecko. Tether's XAUt is backed by over 7.7 tons of physical gold, stored in a Swiss vault, with each token representing one troy ounce.
Gold prices have risen to $3,304 per ounce on May 30, a 29.5% increase from $2,327 a year prior, driven by economic uncertainty. Tether's XAUt0 will compete with gold-backed ETFs and other traditional gold investment instruments.