Tether (USDT) Introduces Cross-Chain Stablecoin (USDT0) to Enhance Liquidity and Interoperability

Stablecoin issuer Tether has announced the launch of USDT0, a cross-chain stablecoin designed to improve liquidity and interoperability across blockchains. Kraken’s layer-2 scaling network, Ink, powers this new stablecoin, which uses LayerZero’s Omnichain Fungible Token (OFT) standard to enable seamless asset transfers.

According to a press release shared with CryptoSlate, each USDT0 token is fully backed 1:1 by USDT locked on Ethereum, ensuring robust security for users. Kraken will make USDT0 available for trading on its centralized exchange starting at 15:00 UTC today.

Upon going live, users will be able to access deposit and withdrawal features for USDT0. This launch sets the stage for USDT0 to become a model for future stablecoin liquidity solutions as Tether plans to extend USDT0’s deployment to other blockchains.

The first on the list is Berachain, an Ethereum-compatible Layer 1 blockchain that incorporates a unique Proof of Liquidity (PoL) consensus mechanism, which aligns well with Tether’s focus on efficient liquidity management.

This expansion reflects Tether’s strategy to broaden its ecosystem and promote seamless interoperability. Another blockchain in Tether’s sights is MegaETH, which offers unmatched performance with sub-10ms block times and a capacity of 100,000 transactions per second. Its compatibility with Ethereum’s security framework makes it suitable for USDT0’s scalability goals.

These integrations are expected to enhance user experiences and support broader adoption. In a statement, Tether’s CEO highlighted that USDT0 introduces a much-needed solution for efficient USDT movement across blockchain ecosystems.

Using LayerZero’s OFT standard eliminates the need for traditional bridging or liquidity pool mechanisms, enhancing developers’ usability and ensuring smooth user experiences. Tether is constantly innovating, and this collaboration with Kraken’s Ink showcases this commitment.

USDT0 is positioned as a pioneering development in stablecoin technology, and expanding to additional chains will further solidify Tether’s leadership in the stablecoin market. With USDT0, Tether aims to set new benchmarks for stablecoin liquidity and cross-chain asset movement, underscoring the company’s dedication to improving efficiency and interoperability in the cryptocurrency landscape.

FAQs

Tether designed USDT0, its cross-chain stablecoin, to enhance liquidity and interoperability across blockchains.

USDT0 uses Kraken’s Ink layer-2 scaling network and LayerZero’s Omnichain Fungible Token (OFT) standard for efficient asset transfers.

USDT locked on Ethereum fully backs each USDT0 token 1:1, ensuring robust security for users.