Right now, domains using IDN aren’t shown correctly in search. DuckDuckGo handles this correctly.
See: https://search.brave.com/search?q=aurora+stämma+staten
vs: https://duckduckgo.com/?q=aurora+stämma+staten&ia=web
Though, malicious domains which look like legitimate domains by using UTF characters can be a security issue. Maybe add a warning next to the domain name somehow indicating it’s UTF?