Stablecoin protocol USDT0 is giving tokenized gold a crypto native spin, aiming to make the world’s oldest shops of worth suitable with decentralized finance (DeFi) purposes.
The platform is introducing the XAUT0 token, which builds on Tether Gold (XAUT) however integrates an omnichain structure to increase its utility for buying and selling and as collateral on lending protocols. The token makes use of LayerZero’s Omnichain Fungible Token (OFT) customary to maneuver seamlessly throughout blockchains with out counting on bridges or wrappers.
Tether’s XAUT corresponds to 1 troy ounce of gold saved in a Swiss vault, linked to a selected bar assembly London Bullion Market Affiliation requirements. It is also redeemable for bodily gold.
The brand new providing follows the protocol’s first providing USDT0, a unified liquidity layer for Tether’s USDT stablecoin that is out there on ten blockchains together with Arbitrum, Optimism and Kraken’s Ink. Since launching earlier this yr, the token ballooned to a $1.3 billion circulating provide.
“I’m a giant bitcoin
man myself,” Lorenzo R., co-founder of USDT0 advised CoinDesk in an interview. “However I additionally like gold and would like to have a neater and extra easy solution to purchase and truly have the ability to use it in my on a regular basis life.”
“We’re nonetheless very early on the subject of precise integration of real-world property and commodities into DeFi protocols,” he added.
The token’s first deployment will happen on The Open Community (TON), the blockchain powering widespread messaging app Telegram’s crypto options. Telegram customers will have the ability to purchase and use the gold-backed token straight inside Pockets in Telegram, probably introducing the tokenized asset to thousands and thousands of customers. TON was initially developed by Telegram, then continued as an unbiased operation after settling a lawsuit by the U.S. Securities and Trade Fee (SEC) in 2020.
A broader promotional rollout of XAUT0 to extra blockchains is deliberate for Q3 this yr.
“There are a number of chains that we’ll be launching on, and a few of these chains are going to have extra DeFi spin to it,” Lorenzo R. stated.