Tether Launches a "New Stablecoin"—What's the Difference Between USDT0 and USDT?
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Tether Launches a "New Stablecoin"—What's the Difference Between USDT0 and USDT?
USDT0, one-click optimization of your cross-chain costs.
Navigating Web3 tides with focused insightsBy Penny
Today, Tether announced the first deployment of its new token USDT0 on Ink—an Ethereum scaling network operated by Kraken—aiming to leverage LayerZero's Omnichain Fungible Token (OFT) standard to develop a cross-chain liquidity layer. This simplifies USDT transfers across blockchains and delivers a seamless experience for both users and developers.
As a stablecoin previously launched by Tether, USDT has become the world’s largest single stable asset. However, stablecoin liquidity remains fragmented: USDT on different chains cannot interoperate, and high cross-chain costs have long deterred ordinary investors. The launch of USDT0 addresses this issue directly—by partnering with LayerZero to significantly enhance cross-chain transaction security, while also enabling zero-slippage cross-chain transfers (examples below), thereby expanding USDT’s utility and reach across blockchains.
Paolo Ardoino, CEO of Tether, said: "USDT0 provides an essential solution for smooth USDT transfers across ecosystems. By enhancing interoperability and removing barriers, it aligns perfectly with Tether’s overall vision and improves user experience. It’s exciting to see such innovation emerge and effectively meet market demand."
Significantly Reducing Cross-Chain Costs
USDT has always had interoperability, but in a fragmented way. Each blockchain hosts its own version of USDT, and transferring between chains traditionally relies on cross-chain bridges—burning USDT on one chain and minting it on another.
With USDT0, that changes: USDT now becomes a single, fluid asset across blockchains rather than being siloed. More precisely, the same token can now move seamlessly across different networks.
For users, USDT0 eliminates fragmentation, resulting in higher capital efficiency. Below is an example of transferring 10,000 USDT from Ethereum to Avalanche using traditional methods (left), versus using LayerZero-powered USDT0 (right). With USDT0, users receive exactly what they send—eliminating costly fee losses during cross-chain transfers.
Expansion Plan
Ink: Gateway to Institutional Liquidity
USDT0 will debut first on Ink, a Layer 2 blockchain launched by Kraken—one of the world’s largest and most trusted cryptocurrency exchanges. Leveraging the world’s largest stablecoin, USDT0 creates a seamless channel for institutional liquidity.
Andrew Koller, founder of Ink, said: "Both USDT0 and Ink are committed to ensuring maximum user and developer control over assets, and frictionless access to opportunities. USDT0 choosing Ink as its launch chain sets a new benchmark for how stablecoin liquidity will flow across all chains in the future."
Additionally, USDT0 has already been integrated with Kraken, allowing users to deposit and withdraw USDT0 on Ink. Further integrations within Kraken’s tech stack are planned, setting standards for USDT0 interoperability and paving the way for a world-class experience for USDT users.
Initial Partnerships and Expansion: Berachain and MegaETH
Following its launch on Ink, USDT0’s initial expansion partners include Berachain and MegaETH, with more announcements expected in the coming weeks.
Berachain is a first-layer (L1) blockchain fully compatible with the Ethereum Virtual Machine (EVM), built on an innovative Proof-of-Liquidity (PoL) consensus mechanism. This rewards users who actively contribute resources to the network using its native governance token $BGT. The integration of USDT0 on Berachain will go live through Boyco, a platform designed to direct capital into core applications on Berachain. Comprising 11 decentralized applications and 15 asset issuers—including USDT0—Boyco serves as an ideal conduit for yield-seeking funds ahead of Berachain’s mainnet launch. Boyco’s pre-deposit vaults have already attracted over $1.5 billion in deposits, a figure expected to grow substantially with official project launches and the inclusion of high-utility assets like USDT0.
MegaETH is the first real-time blockchain, capable of 100,000 transactions per second and sub-10 millisecond block times, while inheriting Ethereum’s security. MegaETH plans to utilize USDT0 across a wide range of DeFi applications and payment products. Combining real-time applications with Tether’s distribution capabilities will accelerate the next wave of cryptocurrency adoption.
In summary, USDT is the world’s largest stablecoin and the most sought-after on-chain asset among users and blockchains alike. USDT0 represents USDT’s scalability solution, optimizing the historically high cross-chain costs and making USDT—and the broader crypto ecosystem—more accessible and user-friendly.
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