Polygon integrates USDT0 and XAUt0 as stablecoin liquidity expands past $1.6 billion

XAUt0 adoption slower, with $2.5 million market cap according to CoinGecko.
Polygon supports over $1 billion in USDT liquidity and six million wallets.
Tether’s USDT surpasses $167 billion market cap, XAUT crosses $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, with the integration introducing new cross-chain liquidity standards built on LayerZero’s Omnichain Fungible Token (OFT) framework.

The move positions Polygon as a key hub for stablecoin payments, decentralised finance (DeFi), and enterprise use cases.

It follows a year in which Tether’s USDT reached a market capitalisation of more than $167 billion in August, and gold-backed XAUT crossed the $1 billion mark on 8 August.

USDT0 and XAUt0 expand across blockchains

USDT0 and XAUt0 differ from traditional stablecoins by not being directly backed by assets such as cash or gold. Instead, they are minted when users deposit USDT or XAUT into a specific contract on Ethereum, which serves as the “LockBox” chain for the ecosystem.

USDT0, launched in January 2025, functions as the omnichain version of USDT, enabling access to dollar-pegged liquidity across multiple networks. XAUt0 followed soon after, providing gold-backed liquidity in a similar format.

Polygon becomes the eleventh supported blockchain for USDT0 and the third for XAUt0, after earlier deployments on TON and Hyperliquid’s HyperEVM.

The tokens have expanded steadily: USDT0’s market capitalisation climbed to nearly $1.6 billion in just two months, while XAUt0 has so far reached $2.5 million, according to CoinGecko data.

Cointelegraph reports that Polygon’s integration also represents a milestone for XAUt0, marking its third blockchain expansion. By contrast, USDT0 has spread more widely, finding adoption across 11 blockchains since its January launch.

Why Polygon is central to stablecoin adoption

Polygon was selected for the integration due to its strong existing 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.

The network has also undergone major infrastructure upgrades such as AggLayer and the Bhilai Hardfork, which enhance its scalability and compatibility with cross-chain projects.

These upgrades have made Polygon an “ideal home” for omnichain stablecoins, with the upgrade ensuring that current Polygon-based USDT (PoS USDT) automatically becomes part of the USDT0 network without a change in contract address.

With this integration, both dollar-pegged and gold-backed liquidity become natively accessible on Polygon. This combination opens new possibilities for DeFi applications, payment systems, and real-world asset (RWA) adoption at an institutional scale.

A milestone in stablecoin interoperability

The integration is also notable for being USDT0’s second major upgrade involving more than $1 billion in liquidity, following its earlier launch on Arbitrum. Polygon now plays a critical role in providing the infrastructure for seamless stablecoin transfer across multiple chains.

Since Ethereum acts as the LockBox chain, all USDT0 and XAUt0 minted tokens across networks correspond to reserves locked on Ethereum. This system ensures that the supply across blockchains remains consistent with deposits on the base chain.

The broader context highlights the growing demand for stablecoins as a foundation for digital payments and tokenised assets.

With USDT’s dominance surpassing $167 billion in market value and XAUT gaining traction past $1 billion, the addition of omnichain liquidity tools like USDT0 and XAUt0 reflects a market increasingly focused on interoperability and scalability.

The post Polygon integrates USDT0 and XAUt0 as stablecoin liquidity expands past $1.6 billion appeared first on CoinJournal.

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