Tether (USDT) Is Launching a New Cross-Chain Stablecoin, USDT0, in Collaboration with Kraken

The token will largely focus on interoperability. The company is first launching USDT0 on Kraken’s Layer-2 network Ink.

Stablecoin issuer Tether is launching a new cross-chain stablecoin, USDT0, in collaboration with Kraken. The token will largely focus on interoperability.

Company is first launching USDT0 on Kraken’s Layer-2 network Ink. Subsequently, it will expand to Berachain and MegaETH, with future expansion targets.

USDT0: A New Solution from Tether

Tether, one of the world’s largest stablecoin issuers, has had an eventful few weeks. The new MiCA legislation severely curtailed its EU operations, but the firm prepared enough to avoid lasting damage.

Earlier this week, Tether announced a complete relocation to El Salvador, and now it is launching a new USDT0 stablecoin.

“USDT0 introduces a much needed solution for seamless USDT movement across ecosystems. By improving interoperability and reducing friction, it enhances the user experience in ways that align with the broader vision of Tether. It’s exciting to see this innovation emerge and tackle real market demand,” said Paolo Ardoino, CEO of Tether.

Tether claimed that USDT0 will first launch on Ink, an L2 powered by Kraken. This is a natural choice of partners, as the exchange cooperated with Tether on multiple occasions related to the MiCA rollout.

According to Tether, USDT0 will be a cross-chain token that can “establish a seamless pathway for institutional liquidity.” Specifically, it will be a vehicle to move USDT between blockchains as easily as possible, driving DeFi growth. With a tagline of “Your USDT, Anywhere,” this new stablecoin will focus on interoperability.

USDT0 is already live on Ink, but Tether claims that its first-wave expansion partners are already working on functionality. First up are Berachain, a liquidity-focused L1 blockchain, and MegaETH, a promising Ethereum-based project. Additional partners will be announced in the coming weeks.

This new USDT0 stablecoin is expected to greatly enhance functionality across the entire Tether ecosystem. The company saw significant profit surges towards the end of 2024, and this asset is part of an ambitious investment into the new year.

It will take some time to determine how successful USDT0’s launch was, but this move suggests confidence.

Overall, Tether’s USDT has seen surging demand through the current bull market. The increasing demand and profits have allowed the stablecoin giant to target expansion through different avenues.

Earlier this month, Tether increased its Bitcoin reserve by $700 million. It also invested a similar amount in a decentralized video-sharing platform, Rumble.