- Adoption of XAUt0 is slower, with a market capitalization of $2.5 million according to CoinGecko.
- Polygon supports over $1 billion in USDT liquidity and six million wallets.
- Tether’s USDT exceeds a $167 billion market capitalization, while XAUT surpassed $1 billion in August.
Polygon has become the latest blockchain to adopt USDT0 and XAUt0, omnichain versions of Tether’s USDT and XAUT, as the stablecoin market continues to expand rapidly.
The rollout was announced by USDT0 operator Everdawn Labs. The integration introduces new cross-chain liquidity standards built on LayerZero’s Omnichain Fungible Token (OFT) framework.
This move positions Polygon as a major hub for stablecoin payments, decentralized finance (DeFi), and enterprise use cases.
The announcement follows a year in which Tether’s USDT reached a market capitalization above $167 billion in August, while gold-backed XAUT passed the $1 billion mark on August 8.
USDT0 and XAUt0 expand across blockchains
USDT0 and XAUt0 differ from traditional stablecoins because they are not backed directly by cash or gold on each chain. Instead, they are minted when users deposit USDT or XAUT into a specific Ethereum contract that serves as a LockBox for the ecosystem.
USDT0, launched in January 2025, acts as an omnichain version of USDT, enabling dollar-linked liquidity to flow across multiple networks. XAUt0 followed soon after, providing gold-backed liquidity in the same omnichain format.
Polygon is now the eleventh blockchain supported for USDT0 and the third for XAUt0, following earlier deployments on TON and HyperLiquid’s HyperEVM.
The tokens have been growing quickly: USDT0’s market capitalization climbed to nearly $1.6 billion in just two months, while XAUt0 has reached $2.5 million so far, according to CoinGecko.
Industry reporting notes that Polygon’s integration marks a milestone for XAUt0 as its third blockchain expansion, while USDT0 has broadened to 11 blockchains since its January debut.
Why Polygon is important for stablecoin adoption
Polygon was chosen for this integration because of its strong presence in the stablecoin ecosystem. The network already supports over $1 billion in USDT liquidity and more than six million wallets, making it a significant base for both retail and institutional adoption.
Polygon has also undergone major infrastructure upgrades—such as AggLayer and the Bhilai hard fork—that improve scalability and cross-chain compatibility.
Those improvements have made Polygon an ideal environment for omnichain stablecoins. The update ensures that existing Polygon-based USDT (PoS USDT) automatically become part of the USDT0 network without changing their contract addresses.
With this integration, both dollar-linked and gold-backed liquidity are natively available on Polygon. That opens new opportunities for DeFi applications, payment systems, and institutional-scale real-world-asset (RWA) adoption.
A milestone for stablecoin interoperability
The integration is notable as the second major USDT0 deployment to exceed $1 billion in liquidity, following its earlier launch on Arbitrum. Polygon now plays a central role in providing infrastructure for seamless transfers of stablecoins across multiple chains.
Because Ethereum acts as the LockBox chain, all USDT0 and XAUt0 tokens minted on other networks correspond to reserves locked on Ethereum. This design ensures that supply across blockchains remains aligned with deposits held on the base chain.
In the broader context, the move highlights increasing demand for stablecoins as a foundation for digital payments and tokenized assets.
With USDT’s market dominance above $167 billion and XAUT gaining popularity beyond $1 billion, adding omnichain liquidity tools like USDT0 and XAUt0 reflects a market increasingly focused on interoperability and scalability.