How Tether Transitioned from Dollar Pegging to Trust Pegging

Recently, according to CoinDesk reports, by the third quarter of 2025, the reserve scale of Tether's tokenized gold product XAUT will exceed 11.6 tons, with a market capitalization surpassing 2.1 billion USD. In addition to the leader product USDT, the company has also launched multiple products—USDT, XAUT, CNHT, GBPT, covering new stablecoins linked to offshore RMB, GBP, and more, while also releasing a specially compliant USD stablecoin for the U.S. market. Tether is quietly completing a strategic transformation of its product line: moving from a single USD peg to a global network of multi-assets, multi-markets, and multi-layer compliance.

From “One U Dominance” to One Super Many Strong

According to CoinDesk, XAUT is issued by Tether's subsidiary TG Commodities and holds physical gold reserves in Switzerland. Each XAUT **token corresponds to one ounce of gold bar, allowing users to directly hold, transfer, or redeem physical gold through the blockchain. Tether CEO Paolo Ardoino stated in an interview that the number of retail users from Latin America, South Asia, and Asia is rapidly increasing as they begin to understand tokenization of gold.

**Currently, USDT **remains the largest stablecoin in the world, but Tether has already expanded its product line to multiple fiat currencies and asset classes.

Paolo Ardoino emphasized in an interview: “USDT is already circulating in hundreds of millions of wallets in emerging markets and developing countries. This technology will exist for the long term, and what it will be able to do in the future is far beyond what it can do today.”

Tether has attempted to create an offshore RMB stablecoin and launched the offshore RMB stablecoin CNHT in 2019, which is pegged 1:1 to the offshore RMB exchange rate. The token was initially launched on the Ethereum network and later in 2022 on the TRON network, allowing users to conveniently hold and transfer offshore RMB digital assets across multiple public chains.

The core use of CNHT is to provide RMB liquidity in international trade and settlement, especially suitable for hedging against RMB exchange rate fluctuations and cross-border payments. Unlike the digital RMB issued within China, CNHT is aimed at the global market, helping to meet the demand for digital RMB in overseas markets and trade circulation.

GBPT is a stablecoin pegged to the British Pound, launched by Tether at the end of 2023. The token is anchored to the Pound at a 1:1 ratio, providing users with a channel to use the Pound on the blockchain.

By putting pound assets on the blockchain, GBPT enables traditional pound payments to possess the fast and low-cost features of crypto assets, which can be used in scenarios such as cross-chain transfers and decentralized finance. Tether CTO Paolo Ardoino expressed optimism about the UK's position in blockchain innovation and willingness to collaborate with regulatory bodies to promote the application of GBPT. The launch of GBPT not only enriches the asset coverage of Tether's stablecoins but also provides users with an on-chain financial entry point denominated in pounds.

At the same time, Tether also launched a key innovative product - USDT0, marking its new layout in compliance and cross-chain aspects.

According to Tether public documents, USDT0 is the fully on-chain deployed version of native USDT. The underlying asset USDT exists on Ethereum and is cross-chain to other chains through Layer0, becoming USDT0. USDT0 is a stablecoin aimed at the U.S. domestic market, strictly adhering to local digital asset regulatory frameworks, and plans to collaborate with financial institutions and payment companies for promotion. This product is also the result of technological iteration, aiming to solve the fragmentation issue of USDT across different chains, allowing stablecoins to be “seamlessly exchanged” across chains such as Ethereum, Tron, and Solana, achieving full-chain liquidity. This technological route is seen as Tether's key layout for future competition in blockchain interoperability.

From USD Anchoring to Trust Anchoring

Tether's diversification shift is like a microcosm of the industry. The stablecoin sector is moving from “single-coin hegemony” to a “multi-asset ecosystem.” An analysis by Chosun points out that Tether's expansion strategy reveals three major trends in the market: first, stablecoins are no longer limited to USD pegging but are extending to diverse reserve assets such as gold, euros, and RMB; second, stablecoin issuers are beginning to strengthen regional compliance and local cooperation to cope with different regulatory systems; third, tokenization of physical assets (such as gold) is becoming a new competitive dimension for stablecoins.

In Tether's layout, XAUT and USDT0 constitute the two main pillars of “asset security” and “regulatory security”: the former enhances collateral stability with gold, while the latter strengthens market trust with Compliance.

Tether's strategic expansion is redefining the connotation of “stablecoin,” no longer just an extension of digital USD, but becoming a multi-dimensional ecosystem that encompasses gold, fiat currencies, and cross-chain technology. Tokenization of gold XAUT has become a symbol of this evolution: in the current context of global economic fluctuations, increasing inflation, and uncertainty in monetary policy, it injects new “physical support” into the digital asset market.

**With the deployment of USDT0, Tether is trying to strike a balance between regulation and technology — consolidating its position as the global leader in stablecoins while preparing to maintain its lead in an era of compliance and interoperability. The next stage of stablecoin competition will no longer just be about which currency to anchor to, but who can build the stable foundation of the global digital economy on trust, transparency, and connectivity.