Tether has taken a bold step towards solving one of crypto’s biggest challenges — cross-chain liquidity — with the launch of USDT0. Designed to expand the USDT standard across blockchain ecosystems, USDT0 offers a fast, secure, and cost-effective way to move stable value between chains, all while maintaining a strict 1:1 backing with USDT.

“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.”

— Paolo Ardoino, CEO of Tether

What is USDT0?

At its core, USDT0 is a cross-chain version of USDT, powered by LayerZero’s Omnichain Fungible Token (OFT) standard. It eliminates the inefficiencies of traditional bridges and fragmented liquidity pools by offering universal composability — integrating USDT0 is as simple as handling any ERC-20 token.

Through a lock-and-mint mechanism, USDT is locked on Ethereum, and an equivalent amount of USDT0 is minted on destination chains such as Ink, Arbitrum, Berachain, MegaETH, and OP Superchain. Users can transfer USDT0 freely across supported blockchains, without worrying about liquidity depth, slippage, or security vulnerabilities common to legacy bridging solutions.

How USDT0 Works

• Asset Locking: USDT is secured in a smart contract on Ethereum.

• Cross-Chain Issuance: USDT0 is minted on target chains, mirroring the locked USDT.

• Seamless Transfers: Move USDT0 across chains via LayerZero without managing liquidity pools.

• Redemption: Burn USDT0 on any supported chain to unlock USDT on Ethereum — always at a 1:1 ratio.

This design guarantees institutional-grade security, with every token backed by real USDT and transfers validated by LayerZero’s decentralized protocol.

Why USDT0 Matters

1. Unified Cross-Chain Liquidity

USDT0 resolves the long-standing issue of liquidity fragmentation by enabling native interoperability across blockchains. No more juggling wrapped assets, managing bridges, or dealing with high transaction fees.

2. Future-Proof and Scalable

With upgradeable smart contracts and a flexible framework, USDT0 is built to adapt as blockchain ecosystems evolve. It’s not just limited to USDT — Tether’s mission is to standardize asset deployment across chains, from USDT to XAUT.

“USDT0 and Ink share a commitment to giving users and developers maximum control over their assets. This is the beginning of a new standard for stablecoin liquidity.”

— Andrew Koller, Founder of Ink

3. Enhanced Security & Efficiency

By eliminating traditional bridging risks, USDT0 offers a safer cross-chain experience. With zero slippage transfers, lower gas costs, and no reliance on third-party liquidity providers, it redefines how stablecoins operate in a multi-chain world.

Ecosystem Integration and Expansion

USDT0 debuted on Kraken’s Ink Layer 2, chosen for its low-cost transactions and institutional focus. It has since expanded to major networks like Arbitrum and OP Superchain, both pivotal to Ethereum’s L2 ecosystem. First-wave partners include Berachain and MegaETH, with further rollouts planned to ensure USDT reaches every significant blockchain.

“The upgrade to USDT0 reinforces Arbitrum’s position as a market leader for stablecoins… setting the stage to massively expand the USDT user base.”

— Steven Goldfeder, CEO of Offchain Labs

Developers and DeFi platforms can now integrate USDT0 effortlessly, benefiting from universal composability without custom bridge deployments or liquidity concerns.

The Value Proposition for DeFi, Users, and Exchanges

• For Developers: Simplified integration, compliance tools, and future-proof contract upgrades.

• For Users: Fast, secure, and low-cost cross-chain transfers without complexity.

• For Exchanges: Efficient multi-chain support with minimal operational overhead.

“USDT0 is one of the most exciting innovations we’ve seen. It powers trillions in economic exchange and continues to ‘bank the unbanked’ globally.”

— Bryan Pellegrino, CEO of LayerZero Labs

Addressing Challenges

While USDT0 delivers transformative benefits, it must navigate:

• Cross-Chain Security Risks: Despite robust protocols, smart contract exploits remain a risk in DeFi.

• Regulatory Scrutiny: Global regulators are intensifying their focus on stablecoins, and USDT0’s cross-chain nature may attract further attention.

• Adoption Pace: Competing against established stablecoins and ensuring deep liquidity across all chains requires ongoing ecosystem engagement.

Unity Wallet & USDT0

We currently support USDT0 across the INK and Arbitrum blockchains for sending and receiving. In the case of USDT0 on Arbitrum, it is also available for cross-chain swaps.

Conclusion: A New Standard for Cross-Chain Stablecoins

USDT0 is more than a technical upgrade — it’s a strategic leap toward unified, efficient, and secure stablecoin liquidity in a multi-chain future. By leveraging LayerZero’s cutting-edge interoperability and Tether’s dominance in stablecoins, USDT0 is set to become the backbone of cross-chain DeFi and Web3 finance.

With continuous expansion, institutional support, and a focus on eliminating friction, USDT0 positions itself as the de-facto solution for stablecoin movement across ecosystems — driving innovation, enhancing liquidity, and setting a new standard for how digital dollars flow in the decentralized world.