- Adoption of XAUt0 is progressing more slowly, with a market cap of $2.5 million according to CoinGecko.
- Polygon already supports over $1 billion in USDT liquidity and more than six million wallets.
- Tether’s USDT tops $167 billion in market cap, with XAUT surpassing $1 billion in August.
Polygon has become the latest blockchain to adopt USDT0 and XAUt0, the omnichain versions of Tether’s USDT and XAUT stablecoins, as the stablecoin market continues to expand rapidly.
The upgrade was announced by USDT0 operator Everdawn Labs and introduces cross-chain liquidity standards built on LayerZero’s Omnichain Fungible Token (OFT) framework.
The move positions Polygon as an important hub for stablecoin payments, decentralized finance (DeFi), and enterprise use cases.
It follows a year in which Tether’s USDT reached a market capitalization of more than $167 billion in August, and gold-backed XAUT surpassed $1 billion on August 8.
USDT0 and XAUt0 expand across blockchains
USDT0 and XAUt0 differ from traditional stablecoins because they are not directly backed by custodial holdings of cash or gold on each chain. Instead, they are minted when users deposit USDT or XAUT into a specific contract on Ethereum, which functions as the ecosystem’s “LockBox” chain.
USDT0, launched in January 2025, serves as the omnichain version of USDT, enabling dollar-pegged liquidity access across multiple networks. XAUt0 followed shortly after, bringing gold-backed liquidity in a similar omnichain format.
Polygon is now the eleventh blockchain supported by USDT0 and the third for XAUt0, after prior deployments on TON and Hyperliquids’ HyperEVM.
The tokens have grown steadily: USDT0’s market cap rose to nearly $1.6 billion within two months, while XAUt0 has reached $2.5 million so far, according to CoinGecko data.
Reports note that Polygon’s integration also marks a milestone for XAUt0 as its third blockchain deployment, while USDT0 has seen broader adoption across 11 blockchains since its launch in January.
Why Polygon is central to stablecoin adoption
Polygon was chosen for this integration because of its strong existing role in the stablecoin ecosystem. The network already supports more than $1 billion in USDT liquidity and over six million wallets, making it a significant base for both retail and institutional activity.
Polygon has also undergone major infrastructure upgrades, such as AggLayer and the Bhilai Hardfork, which have improved its scalability and cross-project compatibility.
These enhancements make Polygon an “ideal home” for omnichain stablecoins. The upgrade ensures that existing Polygon-based USDT (PoS USDT) automatically becomes part of the USDT0 network without changing contract addresses.
With this integration, both dollar-pegged and gold-backed liquidity become natively available on Polygon. That combination opens new opportunities for DeFi applications, payment systems, and institutional-scale adoption of real-world assets (RWA).
A milestone in stablecoin interoperability
The integration is notable as USDT0’s second major upgrade involving more than $1 billion in liquidity, following an earlier launch on Arbitrum. Polygon now plays a key role in providing infrastructure for seamless stablecoin transfers across multiple chains.
Because Ethereum serves as the LockBox chain, all USDT0- and XAUt0-minted tokens across networks correspond to reserves locked on Ethereum. This structure ensures the multi-chain supply remains consistent with deposits on the base chain.
The broader context highlights growing demand for stablecoins as a foundation for digital payments and tokenized assets.
With USDT’s dominance exceeding $167 billion in market capitalization and XAUT gaining momentum above $1 billion, adding omnichain liquidity tools like USDT0 and XAUt0 reflects a market increasingly focused on interoperability and scalability.