Over $1.3b in USDT liquidity and 6M+ wallets on @0xPolygon are now part of the @USDT0_to ecosystem. This will open up new opportunities for payment projects and increase the share of payments made with USDT on Polygon PoS. Over the past 3 months, more than 5.7M addresses have
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USDT0 and XAUT0 bring Omnichain stablecoin liquidity to Polygon
Aug, 27, 2025
3 min read
by Charles Thuo
for Invezz
The stablecoin landscape on Polygon has taken a significant step forward with the launch of USDT0 and XAUT0, two Omnichain versions of Tether’s flagship tokens.
The integration brings cross-chain liquidity directly to Polygon, reinforcing its role as one of the most active hubs for decentralised finance (DeFi) and digital payments.
Omnichain tokens land on Polygon
USDT0 and XAUT0, developed using LayerZero’s Omnichain Fungible Token framework, are designed to connect liquidity across multiple blockchains.
Unlike the traditional Tether-issued USDT, pegged to the dollar, and XAUT, backed by gold reserves, these new tokens are not directly backed by assets.
Instead, they are minted by depositing USDT or XAUT into a special contract on Ethereum, which acts as the LockBox chain.
This mechanism allows the Omnichain versions to circulate across different blockchains while still being tied to their underlying assets.
It ensures that liquidity is available wherever users want to transact, effectively making USDT0 and XAUt0 the backbone of cross-chain stablecoin transfers.
Notably, the decision to expand onto Polygon was driven by its growing prominence in the stablecoin economy.
With more than $1.3 billion in USDT liquidity and over 6 million wallets, Polygon has become one of the top three blockchains for USDT usage.
In the past three months alone, more than 5.7 million addresses have actively used USDT on the network.
Everdawn Labs, which oversees the USDT0 rollout, noted that Polygon’s infrastructure upgrades, such as AggLayer and the Bhilai Hardfork, make it an ideal environment for Omnichain liquidity. The presence of a large community and a thriving DeFi ecosystem further strengthens its appeal as a home for the new tokens.
PoS USDT becomes USDT0
One of the most significant aspects of the launch is that Polygon’s existing PoS USDT has now been fully upgraded to USDT0.
The contract address, however, remains the same.
This seamless transition ensures that existing holders do not face disruptions, while at the same time unlocking new opportunities for payments and liquidity provisioning.
Polygon Foundation CEO Sandeep Nailwal described the upgrade as a big leap for the network’s stablecoin economy, emphasising that it would make user experiences smoother and liquidity flows faster.
Researchers such as Alex from Obchakevich Research also pointed out that this integration could increase the share of payments made with USDT on Polygon in the coming months.
The building momentum in the stablecoin market
USDT0 has grown rapidly since its debut in January 2025, reaching nearly $1.6 billion in market capitalisation within two months.
By comparison, XAUT0 has seen slower adoption, with a market cap of around $2.5 million after launching first on TON and HyperEVM earlier this year.
Polygon is now the third network to support XAUT0, adding a new layer of gold-backed liquidity to its ecosystem.
The broader stablecoin market has also continued to expand.
Tether’s original USDT recently surpassed $167 billion in circulation, while XAUT, the gold-backed token, crossed the $1 billion mark for the first time in August.
Against this backdrop, the move to integrate their Omnichain counterparts on Polygon signals a growing demand for more fluid and interoperable liquidity solutions.
A new phase for cross-chain finance
By bringing USDT0 and XAUT0 to Polygon, developers are not just adding another stablecoin option. They are laying the groundwork for a seamless Omnichain standard that could redefine how liquidity moves across blockchains.
With a strong user base, deep liquidity pools, and institutional interest in real-world asset adoption, Polygon is now positioned to play a central role in the next phase of stablecoin growth.
The integration shows that stablecoins are no longer confined to single networks.
Instead, they are becoming borderless instruments that can adapt to user needs across multiple ecosystems.
For Polygon, this is more than just a technical upgrade; it is a sign that the network is set to be one of the primary engines of the Omnichain economy.
The post USDT0 and XAUT0 bring Omnichain stablecoin liquidity to Polygon appeared first on Invezz
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USDT0 and XAUT0 bring Omnichain stablecoin liquidity to Polygon
Aug, 27, 2025
3 min read
by Charles Thuo
for Invezz
The stablecoin landscape on Polygon has taken a significant step forward with the launch of USDT0 and XAUT0, two Omnichain versions of Tether’s flagship tokens.
The integration brings cross-chain liquidity directly to Polygon, reinforcing its role as one of the most active hubs for decentralised finance (DeFi) and digital payments.
Omnichain tokens land on Polygon
USDT0 and XAUT0, developed using LayerZero’s Omnichain Fungible Token framework, are designed to connect liquidity across multiple blockchains.
Unlike the traditional Tether-issued USDT, pegged to the dollar, and XAUT, backed by gold reserves, these new tokens are not directly backed by assets.
Instead, they are minted by depositing USDT or XAUT into a special contract on Ethereum, which acts as the LockBox chain.
This mechanism allows the Omnichain versions to circulate across different blockchains while still being tied to their underlying assets.
It ensures that liquidity is available wherever users want to transact, effectively making USDT0 and XAUt0 the backbone of cross-chain stablecoin transfers.
Notably, the decision to expand onto Polygon was driven by its growing prominence in the stablecoin economy.
With more than $1.3 billion in USDT liquidity and over 6 million wallets, Polygon has become one of the top three blockchains for USDT usage.
In the past three months alone, more than 5.7 million addresses have actively used USDT on the network.
Everdawn Labs, which oversees the USDT0 rollout, noted that Polygon’s infrastructure upgrades, such as AggLayer and the Bhilai Hardfork, make it an ideal environment for Omnichain liquidity. The presence of a large community and a thriving DeFi ecosystem further strengthens its appeal as a home for the new tokens.
PoS USDT becomes USDT0
One of the most significant aspects of the launch is that Polygon’s existing PoS USDT has now been fully upgraded to USDT0.
The contract address, however, remains the same.
This seamless transition ensures that existing holders do not face disruptions, while at the same time unlocking new opportunities for payments and liquidity provisioning.
Polygon Foundation CEO Sandeep Nailwal described the upgrade as a big leap for the network’s stablecoin economy, emphasising that it would make user experiences smoother and liquidity flows faster.
Researchers such as Alex from Obchakevich Research also pointed out that this integration could increase the share of payments made with USDT on Polygon in the coming months.
Over $1.3b in USDT liquidity and 6M+ wallets on @0xPolygon are now part of the @USDT0_to ecosystem. This will open up new opportunities for payment projects and increase the share of payments made with USDT on Polygon PoS. Over the past 3 months, more than 5.7M addresses have
The building momentum in the stablecoin market
USDT0 has grown rapidly since its debut in January 2025, reaching nearly $1.6 billion in market capitalisation within two months.
By comparison, XAUT0 has seen slower adoption, with a market cap of around $2.5 million after launching first on TON and HyperEVM earlier this year.
Polygon is now the third network to support XAUT0, adding a new layer of gold-backed liquidity to its ecosystem.
The broader stablecoin market has also continued to expand.
Tether’s original USDT recently surpassed $167 billion in circulation, while XAUT, the gold-backed token, crossed the $1 billion mark for the first time in August.
Against this backdrop, the move to integrate their Omnichain counterparts on Polygon signals a growing demand for more fluid and interoperable liquidity solutions.
A new phase for cross-chain finance
By bringing USDT0 and XAUT0 to Polygon, developers are not just adding another stablecoin option. They are laying the groundwork for a seamless Omnichain standard that could redefine how liquidity moves across blockchains.
With a strong user base, deep liquidity pools, and institutional interest in real-world asset adoption, Polygon is now positioned to play a central role in the next phase of stablecoin growth.
The integration shows that stablecoins are no longer confined to single networks.
Instead, they are becoming borderless instruments that can adapt to user needs across multiple ecosystems.
For Polygon, this is more than just a technical upgrade; it is a sign that the network is set to be one of the primary engines of the Omnichain economy.
The post USDT0 and XAUT0 bring Omnichain stablecoin liquidity to Polygon appeared first on Invezz
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