Tether launches its USDT0 stablecoin on Kraken’s L2 Ink
Tether’s cross-chain stablecoin solution, USDT0, has launched on Ink, the layer 2 blockchain by crypto exchange Kraken.
In an announcement on Jan. 16, Ink revealed that Tether had selected it as the first blockchain for the deployment of the omnichain Tether (USDT) expansion and interoperability token, USDT0.
The new token is built on LayerZero’s Omnichain Fungible Token standard and aims to accelerate USDT adoption by offering a “unified liquidity layer” for cross-chain transfers.
According to Tether, USDT0 is designed to further the adoption of the world’s largest stablecoin by providing key benefits such as interoperability, greater liquidity, and improved user accessibility. The use of LayerZero’s OFT standard ensures that USDT0 functions as a “unified asset,” eliminating the need for liquidity pools or custom bridges.
“Today USDT is the most popular digital dollar and stablecoin in the world, with hundreds of millions of users in emerging markets and developing countries… Continuing in this direction, I believe that USDT0 will help scaling the support of USDT across many more blockchains, pushing the boundaries of interoperability forward,” Tether chief executive officer Paolo Ardoino commented via X.
The partnership with Ink makes USDT0 available on the Kraken Exchange. Other projects in the first wave of partnerships include MegaETH and Berachain.
USDT0 works by locking USDT on Ethereum and minting the USDT0 token on Ink. This solution eliminates liquidity fragmentation for USDT, offering an omnichain experience for the community.
USDT0 maintains a 1:1 backing with Tether’s USDT on Ethereum. Users can redeem USDT0 for USDT at a 1:1 ratio at any time.
