Omnichain versions of Tether’s stablecoin USDT (USDt) and Tether Gold (XAUT) are now operational on Solana through Legacy Mesh, an interoperability framework that connects stablecoin liquidity across different blockchains. This move positions Solana as a formidable contender for handling financial transactions and real-world assets (RWAs).

With the introduction of USDT0 and XAUT0, Tether extends its offerings to include not only its well-known digital dollar but also tokenized gold, merging liquidity functionalities with tangible asset applications.

Unlike the traditional USDT issued by Tether, USDT0 is part of a multichain liquidity system intended to unify USDT liquidity levels across various networks, bolstering Tether’s omnichain presence after earlier rollouts on Ethereum, OP Superchain, Polygon, TON, and Arbitrum.

Legacy Mesh facilitates liquidity sharing by connecting native USDT pools, enabling stablecoins to transition between platforms without needing wrapped tokens or intermediary bridges, although bridging risks and liquidity fragmentation continue to pose significant challenges in multichain environments.

The rollout is projected to increase accessibility to Tether’s USDt, the largest stablecoin by market cap with an estimated circulating supply of $180 billion. Since its inception, USDT0 has accounted for over $25 billion in bridge transactions across more than 32,000 moves.

Tamar Menteshashvili, leading the stablecoins initiative at Solana Foundation, stated that this integration will foster advancements in decentralized finance, payment solutions, and institutional-quality financial products on Solana, which could encompass treasury management, remittances, and secured lending.

While XAUT0 is less recognized, it serves as the omnichain counterpart to Tether Gold, which has seen increasing interest due to rising gold prices. XAUT incorporates the yellow metal into digital structures, making it programmable akin to cryptocurrencies such as Bitcoin.

Growing Interest in Stablecoins and RWAs on Solana

Solana, often acknowledged as a thriving blockchain network, is drawing interest from conventional finance sectors, backed by a market cap of approximately $112.6 billion. This makes Solana the second-largest platform for smart contracts, trailing only Ethereum.

According to Matt Hougan from Bitwise Asset Management, Solana is poised to appeal to Wall Street, possibly becoming the preferred choice for banks engaging in stablecoin transactions.

RWA tokenization is also gaining momentum on Solana, with recent launches of protocols like Splyce and Chintai that allow retail investors direct access to tokenized securities on the platform.

Despite these advancements, Solana still captures only a minor share of the RWA market, with around $694 million in tokenized assets on-chain, in contrast to Ethereum, which holds nearly $12 billion. This gap highlights the competition among various blockchains striving to secure institutional investments and manage real-world asset flows, particularly in the context of a favorable regulatory shift in the U.S.