USDT0 And XAUt0 Are Now Reside On Polygon

Polygon, a multi-chain scalability platform, upgraded to the USDT0 customary, the unified liquidity community that launched the omnichain variations of Tether’s USDT and XAUT.

USDT0 (USDT0) and XAUt0 (XAUt0), cross-chain liquidity stablecoins enabled by LayerZero’s Omnichain Fungible Token (OFT), are launching on the Polygon blockchain, USDT0 operator Everdawn Labs introduced to Cointelegraph on Wednesday.

The combination marks a big milestone for XAUt0, with Polygon changing into the second working community for the stablecoin after TON.

For USDT0, Polygon turns into the twelfth supported blockchain, reflecting the stablecoin’s design to supply the “interoperability spine” for Tether USDt (USDT), USDT0 co-founder Lorenzo R instructed Cointelegraph.

What are USDT0 and XAUT0?

Not like the underlying Tether-operated stablecoins — dollar-pegged USDT and gold-backed XAUT (XAUT) — USDT0 and XAUT0 should not straight backed by property like money or gold. As a substitute, they’re minted by depositing USDT or XAUT into a selected contract on Ethereum.

“USDT0 works on high of the core Tether infrastructure, and it provides customers and chains the flexibility to entry their USDT tokens, on the networks they need,” Lorenzo R instructed Cointelegraph in Might.

USDT0, the omnichain model of USDT, went reside in January 2025, over a decade after the Tether USDT stablecoin debuted as Realcoin in October 2014.

XAUT0 adopted quickly after, with USDT0 asserting its first deployment on the TON blockchain in early June 2025.

Why Polygon?

USDT0 has expanded quickly since its January launch, with market capitalization climbing to almost $1.6 billion in two months. Against this, XAUT0 has gained traction extra slowly, reaching simply $2.5 million in market cap, in line with CoinGecko information.

USDT0 selected to scale its ecosystem on Polygon as a result of the community has grown into “one of many strongest ecosystems” for stablecoin funds, decentralized finance (DeFi) and enterprise adoption, Lorenzo R instructed Cointelegraph.

Associated: Coinbase predicts trillion-dollar stablecoin period by 2028

“With over $1 billion in USDT liquidity and greater than 6 million wallets, Polygon offers the size and group wanted to make USDT0 the de facto switch customary,” he mentioned.

Moreover, Polygon’s infrastructure upgrades resembling AggLayer and Bhilai Hardfork make the community an “best residence for omnichain liquidity,” Lorenzo R famous.

“By launching each USDT0 and XAUt0 on Polygon, we’re unlocking seamless stablecoin rails and introducing native gold-backed liquidity into one of the crucial extensively used blockchains — an ideal match for DeFi, funds and institutional-grade RWA [real-world asset] adoption,” he mentioned.

The information got here because the stablecoin market continued to realize momentum. Tether’s USDT — the biggest stablecoin by market capitalization — surpassed $167 billion in mid-August, whereas its gold-backed token XAUT crossed the $1 billion mark for the primary time on Aug. 8.