Tether has announced the launch of XAUt0, a new omnichain token that expands the possibilities of tokenized gold and simplifies its use across different blockchains.
What is Tether XAUt and Why Does Omnichain Matter?
Tether Gold (XAUt) is a token backed by physical gold that provides investors access to the value of gold without the need for physical storage. Each XAUt token corresponds to one troy ounce of gold. The launch of the omnichain version XAUt0 allows the token to move freely between various blockchains, significantly simplifying access to the asset.
LayerZero and the OFT Standard: Mechanisms of XAUt0
XAUt0 utilizes LayerZero technology, which facilitates cross-blockchain support for tokens. The Omnichain Fungible Token (OFT) standard allows tokens to cross blockchains without the need for wrapping into new tokens. This reduces risks and increases liquidity, allowing users to simply initiate a transaction on one blockchain that is automatically confirmed on another.
Social and Market Benefits of the XAUt0 Launch
The launch of XAUt0 offers a range of benefits for both institutional investors and retail users. For institutional players, there is improved liquidity and fast arbitrage trading capabilities. For retail users, XAUt0 enhances the accessibility of tokenized gold, allowing for easy usage across various platforms without additional transfer costs.
With the launch of XAUt0, Tether opens new horizons for tokenized gold, ensuring easier access and enhancing liquidity in a multi-chain ecosystem. This step may serve as a pivotal moment in the development of digital assets and decentralized finance.
