Omnichain Gold and USD Stablecoins Boost Polygon's Finance Ambition

USDT0 and XAUt0, the omnichain liquidity stablecoins developed by Everdawn Labs, have launched on Polygon, marking a strategic expansion for both tokens. These stablecoins, which are enabled by LayerZero’s Omnichain Fungible Token (OFT) technology, provide cross-chain liquidity without the need for bridges or wrapped tokens. XAUt0, the omnichain version of Tether Gold (XAUT), is now operating on its second network, following TON, while USDT0 expands to its 12th supported blockchain. The integration is part of USDT0’s broader goal to serve as the “interoperability backbone” for Tether USDt (USDT), bridging multiple chains for seamless transfers and enhanced utility [1].

The deployment of USDT0 and XAUt0 on Polygon has been facilitated by the platform’s infrastructure upgrades, including AggLayer and the Bhilai Hardfork, which optimize scalability and performance. According to Lorenzo R., co-founder of USDT0, Polygon provides the ideal environment for omnichain liquidity due to its strong DeFi ecosystem, enterprise adoption, and over $1 billion in USDT liquidity. The integration is expected to enhance liquidity for both DeFi applications and real-world asset (RWA) protocols on Polygon, with XAUt0 offering native gold-backed collateral for borrowing and hedging strategies. This move aligns with growing demand for asset-backed digital assets and positions Polygon as a hub for institutional-grade, onchain finance [1].

USDT0 has demonstrated strong growth since its launch in January 2025, with a market capitalization reaching nearly $1.6 billion in two months. By comparison, XAUt0 has gained traction more gradually, reaching a market cap of $2.5 million as of late August 2025. The native deployment on Polygon simplifies transactions and deepens liquidity, offering lower fees and faster cross-chain transfers. The migration from bridged USDT to native USDT0 ensures users do not need to take additional actions, maintaining a seamless experience for wallets, exchanges, and protocols. This transition is expected to strengthen Polygon’s role as a premier payments blockchain and support its vision of gigagas-scale transaction throughput [2].

Polygon’s integration of USDT0 and XAUt0 underscores its role as a multichain coordination layer, enabling unified liquidity across DeFi, payments, and RWA applications. The network’s low-fee structure and high-performance infrastructure make it an attractive environment for stablecoin activity, with over $3 billion in stablecoin liquidity already in circulation. According to Aishwary Gupta, Head of Enterprise at Polygon Labs, the integration of USDT0 and XAUt0 represents a significant milestone in making asset-backed liquidity seamless across the multichain ecosystem. This development is expected to attract further institutional and enterprise adoption, reinforcing Polygon’s position as a leader in scalable onchain finance [6].

The broader stablecoin market continues to show resilience, with Tether’s USDT reaching a market capitalization of over $167 billion as of mid-August 2025. USDT0’s launch on Polygon aligns with broader industry trends, including the growing demand for cross-chain interoperability and the increasing role of stablecoins in global finance. As institutional interest in digital assets grows, native integration of asset-backed liquidity provides a strong foundation for innovation in DeFi and RWA use cases. With Polygon’s Agglayer and other scalability upgrades, the platform is well-positioned to support next-generation financial applications that leverage the combined power of stablecoin and gold-backed liquidity [1].

Source: [1] USDT0 and XAUt0 stablecoins launch on Polygon network (https://cointelegraph.com/news/usdt0-xaut0-stablecoin-launch-polygon) [2] Native USDT0 Comes to Polygon for Lower Fees and ... (https://polygon.technology/blog/native-usdt0-comes-to-polygon-for-lower-fees-and-deeper-liquidity) [6] USDT0 and XAUt0 Are Now Live on Polygon - DL News (https://www.dlnews.com/external/usdt0-and-xaut0-are-now-live-on-polygon/)