Tether's USDT0 and XAUT0 Launch on Solana via LayerZero for Enhanced Liquidity

Executive Summary

Everdawn Labs, in collaboration with Tether and powered by LayerZero, has launched cross-chain versions of USDT and XAUT, branded USDT0 and XAUT0, on the Solana blockchain. This initiative unifies stablecoin liquidity and introduces gold-backed assets, enhancing Solana's position in decentralized finance.

The Event in Detail

USDT0 and XAUT0 represent cross-chain bridged versions of Tether's USDT stablecoin and Tether Gold (XAUT), respectively. These tokens, managed and operated by Everdawn Labs, are now live on Solana through LayerZero's interoperability technology. While native USDT has been available on Solana for several years, USDT0 is designed to significantly expand its liquidity reach. Lorenzo R., co-founder of USDT0, stated that "Existing USDT on Solana can only circulate within the Solana ecosystem. With USDT0, Solana is directly linked to more than $175 billion in native USDT liquidity across Ethereum, Tron, TON, and other major chains, with no wrapped assets, no external bridges, faster settlement, and lower fees."

This marks the first expansion of Tether Gold (XAUT) to the Solana ecosystem via XAUT0. The underlying technology, termed "Legacy Mesh" by Everdawn Labs, leverages LayerZero's protocol, focusing on stablecoin-specific interoperability. This infrastructure supports auditable liquidity pools and avoids wrapped or synthetic tokens, with each transaction on Legacy Mesh fully backed by real assets. Transfers incur a 0.03% fee, paid in USDT.

Currently, the circulating supply of USDT0 is approximately 7.5 billion tokens, and XAUT0 stands at around 7,355 tokens, according to CoinGecko. For comparison, the native USDT circulating supply exceeds 180 billion, and XAUT totals 375,572. USDT0 is also live on other networks including Plasma, Polygon, Arbitrum, Berachain, Ethereum, Ink, Flare, Optimism, Hyperliquid's HyperEVM, SEI, and Rootstock, while XAUT0 is available on TON, HyperEVM, and Polygon.

Market Implications

The integration of USDT0 and XAUT0 into the Solana ecosystem is anticipated to have several market implications. It increases the velocity and interoperability of USDT tokens across the third-largest native Tether ecosystem. This allows users and developers to move USDT funds into Solana in a permissionless manner with reduced fees. The introduction of XAUT0 enhances Solana's role as a hub for real-world asset (RWA) tokenization, providing programmable and composable utility for gold.

Lorenzo R. emphasized that "The combination of omnichain dollars and gold-backed value gives developers and institutions a foundation to build the next generation of applications, ranging from global remittances and corporate treasuries to programmable lending and asset-backed innovation." This development aims to streamline access to unified liquidity and gold-backed stability for decentralized applications, payments, and institutional finance within Solana's fast and low-cost environment.

Expert Commentary

Tamar Menteshashvili, Head of Stablecoins at the Solana Foundation, commented on the significance of this launch: "Solana is at the forefront of onchain finance, and the launch of Legacy Mesh takes that momentum even further. By connecting USDT on Solana with the broader Tether network, Legacy Mesh delivers the fastest and most cost-efficient access for USDT holders to the diverse Solana ecosystem—spanning DeFi, payments, and institutional-grade finance. This launch strengthens both the Solana and Tether ecosystems." Menteshashvili added that XAUT0 introduces similar utility for gold on Solana, making it a powerful asset for collateral, hedging, and onchain treasury management.

Broader Context

Solana's stablecoin supply experienced significant growth in the first quarter of 2025, with the total USD value of stablecoins on the network more than doubling from $5.2 billion in January to $11.7 billion in February. During this period, Solana averaged over 200 million on-chain stablecoin transactions per month. This expansion positions Solana as the third-largest in stablecoin liquidity among public blockchain networks, trailing Ethereum and Tron.

Since its launch, USDT0 products have surpassed $25 billion in bridge volume across more than 320,000 transfers, supporting nine chain pathways. This positions USDT0 as the most active omnichain token within the LayerZero ecosystem. The strategic integration of these omnichain tokens on Solana is part of a broader trend toward enhancing cross-chain interoperability and liquidity for stablecoins and real-world assets across the digital asset landscape. This move eliminates the friction associated with wrapped tokens and third-party bridges, offering a more direct and efficient means of value transfer and utilization across various blockchain networks.