Tether Selects Kraken's Ink to Deploy its Cross-chain USDT0 Stablecoin | Coinspeaker
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Tether Selects Kraken’s Ink to Deploy its Cross-chain USDT0 Stablecoin

Tether has chosen Ink, Kraken’s Ethereum-based layer-2 network, as the first platform for USDT0, with trading set to begin today at 15:00 UTC.

Chimamanda U. Martha By Chimamanda U. Martha Marco T. Lanz Edited by Marco T. Lanz Updated 3 mins read
Tether Selects Kraken’s Ink to Deploy its Cross-chain USDT0 Stablecoin

Key Notes

  • USDT0 aims to revolutionize cross-chain transfers by eliminating traditional bridging needs while maintaining 1:1 backing with Ethereum-locked USDT.
  • Launch on Ink network marks strategic first step, with planned expansions to Berachain and MegaETH to enhance ecosystem connectivity.
  • Built on LayerZero's OFT standard, USDT0 targets liquidity fragmentation issues and simplifies asset movement across supported chains.

Tether, the world’s largest stablecoin issuer, has officially partnered with Ink, a layer-2 scaling network developed by Kraken, to introduce its new omnichain stablecoin, USDT0. This latest stablecoin iteration aims to enhance interoperability for USDT while unifying liquidity across multiple blockchains.

In a statement on Thursday, Kraken confirmed that USDT0 has been deployed exclusively on Ink and will be available for trading on its centralized exchange starting at 15:00 UTC today. Users will have access to deposit and withdrawal functionalities once the stablecoin goes live at the scheduled time.

A New Standard for Stablecoin Liquidity

Ink’s founder, Andrew Koller, emphasized that Tether’s decision to launch USDT0 on the layer-2 network marks a transformative moment for stablecoin liquidity across different blockchains.

“USDT0 and Ink share a commitment to ensuring users and developers have maximum control over their assets and the most seamless access to opportunities possible. 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,” he said.

According to a separate statement, Tether explained that USDT0 was built on LayerZero’s Omnichain Fungible Token (OFT) standard to allow seamless and secure cross-chain transfers.

The company believes that this approach eliminates the need for independent deployments, liquidity pools, or bridging solutions, ultimately enhancing capital efficiency and simplifying asset transfers.

Future Expansion Plans

The stablecoin was also designed to address liquidity fragmentation by enabling effortless integration for developers and smooth user transactions across supported chains. Each USDT0 token is fully backed 1:1 with USDT locked on Ethereum, ensuring security.

Tether’s CEO Paolo Ardoino said the new stablecoin introduces a much-needed solution for seamless USDT movement across ecosystems.

“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 Ardoino.

Following its successful rollout on Ink, Tether intends to expand USDT0 to additional blockchains. The stablecoin is expected to launch on Berachain, an Ethereum-compatible Layer 1 blockchain utilizing the innovative Proof of Liquidity (PoL) consensus mechanism.

Additionally, Tether plans to introduce USDT0 on MegaETH, a high-performance blockchain capable of processing 100,000 transactions per second with sub-10ms block times while maintaining Ethereum’s security framework.

With this expansion, Tether continues to push the boundaries of stablecoin technology, driving greater efficiency and interoperability in the digital asset landscape.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Chimamanda U. Martha

Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.

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