Stablecoin Protocol USDT0 Aims to Bring Tokenized Gold Closer to DeFi

USDT0, a stablecoin protocol, is bridging the gap between traditional finance and decentralized finance (DeFi) by introducing XAUT0, a tokenized gold asset. Building upon Tether Gold (XAUT), XAUT0 offers a significant upgrade through its omnichain architecture, enabling seamless cross-blockchain functionality without the need for bridges or wrappers. This is achieved using LayerZero’s Omnichain Fungible Token (OFT) standard.

Each XAUT0 token represents one troy ounce of gold securely stored in a Swiss vault, adhering to London Bullion Market Association standards. Importantly, it retains the redeemability feature of its predecessor, allowing for conversion to physical gold. This launch follows the successful deployment of USDT0, a unified liquidity layer for Tether’s USDT stablecoin, currently operating across ten blockchains, including prominent platforms like Arbitrum, Optimism, and Kraken’s Ink. Since its inception earlier this year, USDT0 has amassed a substantial circulating supply of $1.3 billion.

The decision to create XAUT0 stems from a recognition of the potential for integrating real-world assets into DeFi. Co-founder Lorenzo R. highlighted the demand for simpler access to gold’s value within everyday life, even while expressing personal enthusiasm for Bitcoin. He emphasized the nascent stage of real-world asset integration within DeFi protocols, suggesting significant growth potential in this area.

The initial deployment of XAUT0 will be on The Open Network (TON), leveraging Telegram’s Wallet to provide access to millions of users. This strategic partnership allows for direct purchase and utilization of the gold-backed token within Telegram’s messaging app. TON, originally developed by Telegram, now operates independently following a 2020 settlement with the U.S. Securities and Exchange Commission (SEC). Further expansion of XAUT0 to additional blockchains is planned for the third quarter of this year, with a focus on platforms offering robust DeFi capabilities.