Tether Launches XAUt0 Gold-Backed Token on TON Blockchain

Tether, a leading stablecoin issuer, has broadened its product range with the introduction of XAUt0, an omnichain version of its gold-backed token XAUt. This new asset is designed to function on The Open Network (TON) blockchain, enabling users to transfer gold-backed tokens effortlessly across various blockchains. The launch of XAUt0 signifies a major advancement in Tether's initiative to merge traditional assets with the decentralized finance (DeFi) ecosystem.

The XAUt0 token is supported by physical gold, with each token equivalent to one troy ounce of gold. The gold is securely stored in Swiss vaults, certified by the London Bullion Market Association, ensuring that the token's value is backed by a tangible asset. This gold-backed token is built on the Omnichain Fungible Token (OFT) standard developed by LayerZero, which allows for the seamless transfer of tokens between different blockchains without the need for synthetic assets or bridges. This innovation ensures true ownership and complete composability within the Web3 ecosystem.

The introduction of XAUt0 on the TON blockchain is part of Tether's broader strategy to enhance the accessibility and usability of gold as a trusted store of value in the decentralized finance space. By leveraging the TON blockchain, Tether aims to provide users with the benefits of gold's reliable value storage capabilities combined with the programmability and flexibility of DeFi. This includes features such as self-custody, 24/7 trading, physical redemption, and fractional ownership.

The launch of XAUt0 is anticipated to attract users who seek the stability and security of gold-backed assets while benefiting from the efficiency and interoperability of the TON blockchain. Tether's partnership with the TON Foundation highlights the growing collaboration between traditional financial assets and blockchain technology, paving the way for more innovative financial products in the future.