Polygon, a popular blockchain network, has recently integrated USDT0 and XAUt0, the omnichain versions of Tether’s USDT and XAUT stablecoins. This move comes as the stablecoin market continues to expand rapidly, with new cross-chain liquidity standards being introduced by Everdawn Labs, the operator of USDT0.
The integration of USDT0 and XAUt0 on Polygon positions the network as a key hub for stablecoin payments, decentralized finance (DeFi), and enterprise use cases. This development follows a significant year for Tether’s USDT, which surpassed a market capitalization of over $167 billion in August, while XAUT crossed the $1 billion mark.
USDT0 and XAUt0 differ from traditional stablecoins in that they are not directly backed by assets like cash or gold. Instead, these tokens are minted when users deposit USDT or XAUT into a specific contract on Ethereum, which acts as the “LockBox” chain for the ecosystem.
Launched in January 2025, USDT0 serves as the omnichain version of USDT, providing access to dollar-pegged liquidity across multiple networks. XAUt0, on the other hand, offers gold-backed liquidity in a similar format. Polygon now becomes the eleventh supported blockchain for USDT0 and the third for XAUt0, following earlier deployments on TON and Hyperliquid’s HyperEVM.
The market capitalization of USDT0 has rapidly grown to nearly $1.6 billion, while XAUt0 has reached $2.5 million, according to CoinGecko data. Polygon’s integration with USDT0 and XAUt0 marks a significant milestone for both tokens, with USDT0 finding adoption across 11 blockchains since its launch in January.
Polygon was chosen for the integration due to its strong presence in the stablecoin ecosystem, supporting over $1 billion in USDT liquidity and more than six million wallets. The network has undergone infrastructure upgrades like AggLayer and the Bhilai Hardfork, enhancing its scalability and compatibility with cross-chain projects.
With the integration of USDT0 and XAUt0 on Polygon, dollar-pegged and gold-backed liquidity becomes natively accessible on the network. This opens up new possibilities for DeFi applications, payment systems, and institutional adoption of real-world assets.
The integration of USDT0 and XAUt0 on Polygon is a significant milestone in stablecoin interoperability, with the network playing a critical role in providing infrastructure for seamless stablecoin transfers across multiple chains. This development reflects the growing demand for stablecoins as a foundation for digital payments and tokenized assets in a market increasingly focused on interoperability and scalability.