- Adoption of XAUt0 is slower, with a market capitalization of $2.5 million according to CoinGecko.
- Polygon already supports more than $1 billion in USDT liquidity and over six million wallets.
- Tether’s USDT surpassed a market capitalization of $167 billion, while XAUT exceeded $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 integration was announced by USDT0 operator Everdawn Labs and implements cross-chain liquidity standards built on LayerZero’s Omnichain Fungible Token (OFT) framework.
This move positions Polygon as an important hub for stablecoin payments, decentralized finance (DeFi) applications, and enterprise use cases.
It follows a year in which Tether’s USDT reached a market capitalization above $167 billion 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 specific assets like cash or physical gold in each network. Instead, tokens are minted when users deposit USDT or XAUT into a designated Ethereum contract that functions as a LockBox for the omnichain ecosystem.
USDT0, launched in January 2025, serves as an omnichain version of USDT, enabling access to dollar-backed liquidity across multiple networks. XAUt0 followed shortly after, providing gold-backed liquidity in a comparable format.
With Polygon’s addition, it becomes the eleventh blockchain supported by USDT0 and the third for XAUt0, following earlier deployments on TON and HyperEVM by Hyperliquid.
The tokens have grown quickly: USDT0’s market capitalization climbed to nearly $1.6 billion within two months, while XAUt0 has reached $2.5 million so far, according to CoinGecko data.
Cointelegraph reports that Polygon’s integration marks a milestone for XAUt0 as its third blockchain expansion. USDT0 has seen broader adoption, reaching 11 blockchains since launching in January.
Why Polygon matters for stablecoin adoption
Polygon was chosen for integration because of its strong existing position in the stablecoin ecosystem. The network already supports over $1 billion in USDT liquidity and hosts more than six million wallets, making it a meaningful base for both retail and institutional adoption.
Polygon has also implemented significant infrastructure upgrades, such as AggLayer and the Bhilai hardfork, which improve scalability and cross-project compatibility.
Those enhancements make Polygon an “ideal home” for omnichain stablecoins. The update ensures that the current Polygon-based USDT (PoS USDT) will automatically become part of the USDT0 network without changing the contract address.
As a result of this integration, dollar- and gold-backed liquidity will be natively available on Polygon. That availability opens new possibilities for DeFi applications, payment systems, and real-world asset (RWA) adoption at institutional scale.
A milestone in stablecoin interoperability
The integration is notable as a second major USDT0 expansion that brings more than $1 billion in liquidity following the earlier Arbitrum rollout. Polygon now plays a key role in providing the infrastructure for seamless stablecoin transfers across multiple blockchains.
Because Ethereum acts as the LockBox chain, all USDT0 and XAUt0 tokens minted on other networks correspond to reserves locked on Ethereum. This design keeps cross-chain supply consistent with the deposits held on the base chain.
In the broader context, the development highlights growing demand for stablecoins as a foundation for digital payments and tokenized assets.
With USDT’s market cap exceeding $167 billion and XAUT surpassing $1 billion, integrating omnichain liquidity tools like USDT0 and XAUt0 underscores a market increasingly focused on interoperability and scalability.