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Tether selects Kraken’s Layer 2 blockchain, Ink, for the debut of its new cross-chain stablecoin USDT0.
Photo: Kraken
Key Takeaways
Tether introduces USDT0 to enhance USDT’s interoperability, allowing seamless transfers across chains with LayerZero’s OFT standard. USDT0 launches on Kraken’s Ink L2, with plans to expand to Berachain and MegaETH, offering users unparalleled access to USDT liquidity. <?xml encoding="UTF-8"?>Tether has announced the launch of USDT0 on Kraken’s Layer 2 blockchain, Ink.
This new stablecoin solution is designed to expand USDT’s reach across multiple blockchains while maintaining its 1:1 backing with USDT on Ethereum.
The new solution is built on LayerZero’s Omnichain Fungible Token standard and leverages the Optimism Superchain for its operations.
With almost $140 billion in circulation, USDT has become a cornerstone of decentralized finance, providing critical financial infrastructure worldwide.
Paolo Ardoino, CEO of Tether, emphasized the innovation behind USDT0, stating,
“By improving interoperability and reducing friction, it enhances the user experience in ways that align with the broader vision of Tether.”
The integration with Ink enables users to access institutional liquidity and conduct deposits and withdrawals directly through Kraken accounts.
Andrew Koller, founder of Ink, said, “USDT0 choosing Ink as its first chain is the beginning of a new standard for how stablecoin liquidity should flow across all chains in the future.”
The system operates by locking USDT on the Ethereum Mainnet, followed by minting equivalent USDT0 tokens on destination chains.
Users can move USDT0 across ecosystems without managing liquidity or using traditional bridge solutions, with the ability to redeem USDT0 for USDT on Ethereum at a 1:1 ratio.
Following its debut on Ink, USDT0 is set to integrate with Berachain, a Layer 1 blockchain leveraging a novel Proof of Liquidity mechanism, and MegaETH, a real-time blockchain offering unparalleled transaction speeds.
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