Polygon Upgrades to USDT0 Standard
Polygon, a multi-chain scalability platform, has upgraded to the USDT0 standard, a unified liquidity network that has introduced the omnichain versions of Tether’s USDT and XAUT.
Launch Announcement
On Wednesday, USDT0 operator Everdawn Labs revealed that USDT0 (USDT0) and XAUt0 (XAUt0), cross-chain liquidity stablecoins powered by LayerZero’s Omnichain Fungible Token (OFT), will be launching on the Polygon blockchain.
XAUt0’s Milestone
This integration represents a significant milestone for XAUt0 as Polygon becomes its third blockchain integration following its initial launch on TON and Hyperliquid’s HyperEVM.
USDT0’s Expansion
For USDT0, Polygon is now the 12th supported blockchain, indicating the stablecoin’s design to create the “interoperability backbone” for Tether USDt (USDT), as noted by USDT0 co-founder Lorenzo R in his comments.
Differences from Traditional Stablecoins
Unlike the classic Tether-operated stablecoins — the dollar-pegged USDT and gold-backed XAUT (XAUT) — USDT0 and XAUT0 are not directly backed by assets like cash or gold. Instead, they are minted by placing USDT or XAUT into a specific contract on Ethereum.
Functionality of USDT0
“USDT0 works on top of the core Tether infrastructure, and it allows users and chains to access their USDT tokens on the networks they prefer,” Lorenzo R explained in May.
Launch Timeline
The omnichain iteration of USDT, USDT0, was launched in January 2025, over ten years after the original Tether USDT stablecoin was introduced as Realcoin in October 2014.
XAUT0 soon followed, with USDT0 announcing its first deployment on the TON blockchain in early June 2025.
Market Capitalization Growth
Since its launch in January, USDT0 has seen rapid growth, with its market capitalization reaching nearly $1.6 billion within two months. In comparison, XAUT0 has experienced slower progress, achieving a market cap of just $2.5 million, according to data from CoinGecko.
Choice of Polygon
USDT0 selected Polygon to expand its ecosystem due to its emergence as “one of the strongest ecosystems” for stablecoin payments, decentralized finance (DeFi), and enterprise adoption, Lorenzo R shared.
“With over $1 billion in USDT liquidity and more than 6 million wallets, Polygon offers the scale and community necessary to establish USDT0 as the standard for transfers,” he added.
Transition for Existing USDT
“Please note that PoS USDT [the current USDT on Polygon] will transition to USDT0; the contract address will remain unchanged, but the token will become a part of the USDT0 network,” Lorenzo R further mentioned.
Infrastructure Enhancements
Moreover, Polygon’s infrastructure updates, including AggLayer and Bhilai Hardfork, position the network as an “ideal home for omnichain liquidity,” Lorenzo R pointed out.
Unlocking Potential
“By launching both USDT0 and XAUt0 on Polygon, we’re enabling seamless stablecoin operations and introducing native gold-backed liquidity into one of the most utilized blockchains — a perfect fit for DeFi, payments, and institutional-grade RWA [real-world asset] adoption,” he stated.
Second Major Upgrade
According to Lorenzo R, the Polygon integration represents USDT0’s second upgrade surpassing $1 billion, following the upgrade on Arbitrum.
He also mentioned that the USDT0 supply locked on Ethereum corresponds to the total issued amount of USDT0 across networks since Ethereum acts as its “LockBox” chain, which is the source from which USDT tokens enter the USDT0 ecosystem.
Market Momentum
This announcement arrives as the stablecoin market continues to thrive. Tether’s USDT — the largest stablecoin by market capitalization — exceeded $167 billion in mid-August, while its gold-backed token XAUT surpassed the $1 billion mark for the first time on August 8.
