Tether announced the addition of XAUT tokens to TON chain

Tether’s gold-backed token is live in a TON-based version with the ticker XAUt0. The asset aims to offer an inflation-proof tool in an easily accessible on-chain form. 

Tether, Inc. announced the expansion of its gold-backed token to the TON blockchain. The new asset will run on TON with the ticker XAUt0, offering exposure to gold in a convenient on-chain form. 

Tether’s gold-backed token is the next asset to benefit from the long-running partnership with TON. The chain is one of the few to carry a native version of USDT, offering convenience and liquidity. The inflow of gold-backed tokens will further grow the TON ecosystem. Following the news, TON recovered to $3.20 following an incident with a short-term network outage.

USDT0, the cross-chain protocol for different stablecoins and asset-backed tokens, will launch the gold-backed token on TON. The protocol announced the details through its X profile. 

Built on @LayerZero_Core’s Omnichain Fungible Token (OFT) standard, just like USDT0, XAUt0 allows users to seamlessly and securely move their gold between chains while ensuring full 1:1 backing via XAUt’s physical holdings.

The first deployment of XAUt0 will take place on…

— USDT0 (@USDT0_to) June 2, 2025

The deployment to TON is part of the USDT0 multi-chain expansion for tokenized precious metals. The TON version will represent the same ownership of one troy ounce of gold, certified by the London Bullion Market Association.

The on-chain asset will also differ from other forms of simple tokenized gold present on a single chain. The new standard for XAUt0 tokens will run on LayerZero’s Omnichain standard. This will allow users to move tokens seamlessly between chains, ensuring full 1:1 backing and no price disparities. 

Tether’s gold token currently has its largest markets on Bybit and HTX, with volumes ranging between $3M and $6M daily. The asset has relatively low activity due to its high price but has reflected the demand on spot gold markets. The launch arrived at a time when spot gold traded at $3,379.99, up 39.95% for the past year. 

Tether’s gold token XAUT taps demand for tokenized precious metals

The original XAUT tokens by Tether first appeared in 2020, in time to tap one of the significant rallies of physical gold. The tokens allow for fractional ownership as well as physical delivery to a Swiss address. 

TON already carries over 928M USDT tokens, retaining its native usage ahead of other L1 and L2 chains. The addition of tokenized gold boosts the chain’s total value locked and may increase trading opportunities. 

The addition arrives as Telegram’s network aims to become more compliant and tap the US investor market. The XAUt0 coins and tokens are transferable to other chains, with automated mint and burn during bridging. The assets can also be used as DeFi collateral or held as exposure to spot gold.

For now, gold-backed tokens remain pseudonymous and borderless, though the physical gold may be subject to limitations. XAUT is backed by 7.7 tons of physical gold, based on Tether’s latest attestation.

Tokenized precious metals total about $2.1B for various types of assets. Tokenized gold aims to resemble the crypto ethos for hard money while also tapping the recent speculative interest in gold. BTC and gold retained their positive correlation in 2025 after breaking the connection in 2024.

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