Today, Tether announced the first deployment of its new token USDT 0 on Kraken’s Ethereum expansion network Ink, aiming to develop a cross-chain liquidity layer using LayerZero’s Omnichain Fungible Token Standard, simplify cross-chain transfers of USDT, and provide a seamless user and developer experience.
As the stablecoin launched by Tether, USDT has become the worlds largest single stable asset. However, the liquidity of stablecoins is currently fragmented, and USDT on different chains cannot flow and communicate with each other. The high cross-chain costs have always been prohibitive for ordinary investors. The launch of USDT 0 is to solve this problem. On the one hand, cooperation with LayerZero has greatly improved the security of cross-chain transactions. On the other hand, it has achieved zero wear and tear on cross-chain transfers (there are examples below), further expanding the business scope of USDT and expanding the practicality of USDT on the blockchain.
Paolo Ardoino, CEO of Tether, said: “USDT 0 brings a much-needed solution to enable the smooth flow of USDT between different ecosystems. It fits with Tether’s overall vision and optimizes the user experience by improving interoperability and reducing friction. It is exciting to see such innovation emerge and meet market needs.”
Greatly reduce cross-chain costs
USDT has always been interoperable, but in a fragmented way. Each blockchain has its own USDT, and to transfer USDT between different chains, you have to rely on solutions such as cross-chain bridges, which destroy USDT on one chain and mint it on another.
With USDT 0, the situation is different: USDT is now a single, liquid asset across blockchains, no longer fragmented. Specifically, the same token can be smoothly transferred between different networks.
For users, USDT 0 eliminates the fragmentation problem, which means higher capital efficiency. Below is an example of transferring 10,000 USDT from Ethereum to Avalanche (left), and now using USDT 0 powered by LayerZero (right). As can be seen, with USDT 0, users can get as much as they transfer across chains, greatly reducing the loss of expensive handling fees.
Expansion Plans
Ink: The gateway to institutional liquidity
USDT 0 will first be launched on Ink, an L2 blockchain launched by Kraken, one of the worlds largest and most trusted cryptocurrency exchanges. Leveraging the worlds largest stablecoin, USDT 0 builds a seamless channel for liquidity between institutions.
Andrew Koller, founder of Ink, said: “Both USDT 0 and Ink are committed to ensuring that users and developers have maximum control over their assets and access to opportunities as seamlessly as possible. USDT 0’s selection of Ink as its first launch chain will set a new standard for stablecoin liquidity to flow across all chains in the future.”
Additionally, USDT 0 has been integrated with Kraken, allowing users to deposit and withdraw USDT 0 on Ink. More integrations are planned within the Kraken technology stack, which will set the standard for USDT 0 interoperability and pave the way for a world-class experience for USDT users.
First round of cooperation and expansion: Berachain and MegaETH
Following Ink, the first round of partners for USDT expansion through USDT 0 include Berachain and MegaETH, with more announcements to come in the coming weeks.
Berachain is a fully Ethereum Virtual Machine (EVM) compatible layer 1 (L1) blockchain built on an innovative Proof of Liquidity (PoL) consensus mechanism that rewards users who actively contribute resources to the network with the network’s native governance token, $BGT. The integration of USDT 0 on Berachain will launch on the Boyco platform, which aims to bring funds directly into core applications on Berachain. Made up of 11 decentralized applications and 15 asset issuers (including USDT 0), Boyco is an ideal channel to reserve yield-seeking funds for the Berachain launch. Boyco’s pre-deposit vault has attracted over $1.5 billion in deposits, a number that is expected to grow significantly with the launch of official projects and the addition of high utility value assets like USDT 0.
MegaETH is the first live blockchain to achieve 100,000 transactions per second and sub-10 millisecond block times while inheriting the security of Ethereum. MegaETH looks forward to leveraging USDT 0 in a wide range of DeFi applications and payment products. Combining live applications with Tether distribution capabilities will accelerate the next wave of cryptocurrency adoption.
In general, USDT is the worlds largest stablecoin and the most sought-after on-chain asset by users and the blockchain itself. USDT 0 is a way to expand USDT, which optimizes the problem of high cross-chain costs of USDT, making USDT and the entire cryptocurrency ecosystem more friendly.
