Polygon Unveils USDT0: A Native Leap for Multichain Liquidity

Polygon, a leading blockchain platform for payments and real-world asset (RWA) solutions, has upgraded its Tether USDT to USDT0, a native token designed to enhance cross-chain interoperability and reduce transaction costs. The upgrade eliminates the need for bridging USDT via Polygon's Proof-of-Stake chain, streamlining liquidity and enabling faster, more cost-effective transfers. As a native asset, USDT0 is directly deployed on Polygon’s network, offering users deeper access to a stablecoin ecosystem with over $3 billion in liquidity [1].

The transition to USDT0 marks a strategic shift for Polygon, aligning with its broader objective to become a premier platform for institutional and enterprise-grade financial infrastructure. The integration leverages Polygon’s existing infrastructure upgrades, such as AggLayer and the Bhilai Hardfork, which improve scalability and finality. This positions Polygon as a key player in the growing multichain environment, where seamless asset movement and interoperability are critical for DeFi, payments, and RWA adoption [2].

In addition to USDT0, Polygon now supports XAUt0, the omnichain version of Tether Gold (XAUt), which represents a digital representation of gold. XAUt0 introduces gold-backed liquidity to the Polygon ecosystem, enabling developers and users to integrate gold as collateral in DeFi protocols, hedging mechanisms, and asset management platforms. This is the third blockchain deployment for XAUt0, following its initial launches on TON and HyperEVM, reflecting the increasing demand for diversified and asset-backed digital liquidity [3].

The USDT0 standard, developed by Everdawn Labs, represents an evolution of Tether’s core infrastructure, allowing users to access their stablecoins on preferred networks without compromising liquidity or usability. Unlike traditional stablecoins, USDT0 and XAUt0 are not directly asset-backed but are minted by depositing USDT or XAUT into an Ethereum-based contract. This approach reduces reliance on centralized bridges and wrapped tokens, enhancing security and efficiency for cross-chain transactions [2].

Polygon’s integration with USDT0 and XAUt0 aligns with broader industry trends, including the rise of omnichain liquidity and the increasing adoption of stablecoins in institutional finance. The platform’s low-cost, high-speed infrastructure has already established it as a leader in micropayments and stablecoin transactions. With the launch of USDT0, Polygon strengthens its role in the multichain future, offering a unified liquidity backbone for developers, enterprises, and institutions [3].

The transition to USDT0 is seamless for users and centralized exchanges, as the contract address remains unchanged from the previously bridged version of USDT on Polygon. This ensures continuity for existing users while unlocking new possibilities for cross-chain applications and institutional-grade RWA adoption. As Polygon continues to expand its interoperability with other chains, the platform is well positioned to support a growing range of financial use cases, from decentralized payments to asset-backed lending [1].

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