Tether has announced the launch of the latest stablecoin – USDT0, which is now available on Kraken’s Layer 2 solution built on Ethereum, Ink. This initiative is going to facilitate the compatibility of USDT stablecoin within various blockchain infrastructures. Through the use of Omnichain Fungible Token (OFT) standard for USDT0 there is efficient cross chain asset transfer backed 1:1 by USDT.
Tether Partners With Kraken’s Ink L2 for USDT0 Stablecoin
In a recent announcement, Tether confirmed the deployment of its new USDT0 stablecoin on Kraken’s Layer 2 blockchain, Ink. This partnership marks a step in enabling smoother cross-chain transfers for Tether’s users.
USDT0 leverages LayerZero’s OFT standard to facilitate token transfers across multiple blockchains. The OFT framework ensures that every USDT0 token minted on a destination blockchain is backed by locked USDT on Ethereum. Consequently, this maintains the token’s stability and reliability.
Following the development, Tether CEO, Paolo Ardoino commented,
“USDT0 introduces a much-needed solution for seamless USDT movement across ecosystems. It’s exciting to see this innovation emerge and tackle real market demand.”
Notably, USDT0 debuted on Ink, Kraken’s Ethereum-based Layer 2 solution designed for institutional liquidity and optimized transaction speeds. The integration allows users to deposit and withdraw USDT0 seamlessly through Kraken’s platform.
Tether plans to expand USDT0 to other blockchain ecosystems, including Berachain and MegaETH. This move will enhance liquidity access and broaden the reach of USDT in decentralized finance (DeFi) applications across different chains.
Enhanced Liquidity and Efficiency with LayerZero Integration
USDT0 utilizes LayerZero’s Omnichain Fungible Token (OFT) standard to streamline liquidity and token transfers across blockchains. The LayerZero protocol secures, accelerates, and reduces the cost of transactions by backing every USDT0 token with locked USDT on Ethereum.
More so, the integration with Kraken’s Ink provides institutional users with a reliable and secure environment for managing USDT0 transactions. This approach simplifies cross-chain operations while maintaining reliability and security.
CEO of LayerZero Labs, Bryan Pellegrino, expressed excitement with the partnership stating,
“Years in the making, USDT0 is one of the most exciting things we’ve seen in a very long time.”
Future Prospects For The Stablecoin Issuer
Tether’s collaboration with Kraken’s Ink and the use of LayerZero technology underlines its commitment to expanding USDT’s usability. The deployment of USDT0 is a step forward in establishing a unified liquidity layer across blockchains.
Moreover, as part of its expansion strategy, the stablecoin issuer has moved its base of operations to El Salvador. Tether secured a DASP license to legally issue stablecoins within the country.
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