Tether Sets Sights on Cross-Chain Future with Introduction of USDT0
Tether’s new model locks up Ethereum-based USDT in a secure contract, then issues an equivalent number of USDT0 tokens on other blockchains
Tether, long recognized as one of the most influential players in the stablecoin market, has embarked on a new phase of expansion through the launch of a token known as USDT0.
Announced today, this innovative digital asset is designed to maintain a strict 1:1 backing with Tether’s flagship USDT on Ethereum while also operating across a widening array of blockchain networks.
The goal, company officials say, is to simplify the experience for developers and everyday users as they move funds within decentralized finance.
USDT0 Launch
The first stop for USDT0 is Ink, a Layer 2 blockchain developed by the crypto exchange Kraken. Tether’s decision to launch on Ink reflects a growing trend within the digital asset industry, where stablecoin issuers are forging alliances with major trading platforms to ensure robust liquidity and effortless user experiences.
According to Tether’s leadership, this tie-up between Ink and USDT0 will offer users the freedom to move stable assets with the same ease they have come to expect from traditional banking, all while preserving the underlying stability that has made Tether a staple of decentralized markets.
Key to the cross-chain ambitions of USDT0 is its construction on LayerZero’s Omnichain Fungible Token (OFT) standard, which seeks to address a longstanding concern in decentralized finance: bridge-based vulnerabilities. Rather than asking users to shuttle tokens between multiple networks using separate bridging services, Tether’s new model locks up Ethereum-based USDT in a secure contract, then issues an equivalent number of USDT0 tokens on other blockchains. This way, movement between chains becomes nearly seamless, while users retain the option to redeem their tokens for Ethereum-based USDT at any point.
