{"id":"usdt0","title":"USDT0","content":"**USDT0** is a cross-chain [stablecoin](https://iq.wiki/wiki/stablecoin) announced by a joint venture between [Tether ](https://iq.wiki/wiki/tether)and[ LayerZero](https://iq.wiki/wiki/layerzero) on January 16th, 2025. Taking advantage of [LayerZero](https://iq.wiki/wiki/layerzero)'s Omnichain Fungible Token (OFT) design, it is to enabled to seamlessly transfer across multiple [blockchain ](https://iq.wiki/wiki/blockchain)networks without the need for bridges or swaps. It represents Tether's strategic expansion of its [stablecoin](https://iq.wiki/wiki/stablecoin) ecosystem to address interoperability challenges in the [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) space.  [\\[1\\]](#cite-id-JVpPkGIgT3) [\\[2\\]](#cite-id-Uun5qdgrYn) [\\[4\\]](#cite-id-tx80eAW4d0)\n\n![](https://ipfs.everipedia.org/ipfs/QmapE4f3xBBfKcPfW1EHyndz6TMkHBHkKiGEgJcLKn3Sza)\n\n## Overview\n\nUSDT0 was introduced as Tether's solution to the fragmentation issues in the [blockchain](https://iq.wiki/wiki/blockchain) ecosystem. Traditional stablecoins typically operate on specific [blockchains](https://iq.wiki/wiki/blockchain), requiring users to employ bridges or swaps when transferring assets between different networks. USDT0 eliminates that need by using a messaging layer to send tokens, with [USDT](https://iq.wiki/wiki/tether) locked on [Ethereum ](https://iq.wiki/wiki/ethereum-virtual-machine-evm)and equivalent USDT0 tokens [minted ](https://iq.wiki/wiki/minting)on the target chain, allowing redemption by unlocking the corresponding [USDT](https://iq.wiki/wiki/usdt0) on [Ethereum](https://iq.wiki/wiki/ethereum).\n\nUSDT0 employs LayerZero's OFT standard to enable seamless deployment and asset transfer across new blockchains, maintaining a 1:1 peg to USDT on Ethereum, and is currently live on Kraken’s Ink network with plans to launch on [Berachain](https://iq.wiki/wiki/berachain), [Arbitrum](https://iq.wiki/wiki/arbitrum), and MegaETH. USDT0 represents an evolution in Tether's product lineup, which already included USDT, the largest stablecoin by market capitalization. By introducing this cross-chain capability, Tether aims to enhance the utility and accessibility of stablecoins in the broader cryptocurrency ecosystem.  [\\[1\\]](#cite-id-JVpPkGIgT3) [\\[3\\]](#cite-id-RmIvpvk0do) [\\[4\\]](#cite-id-tx80eAW4d0) [\\[5\\]](#cite-id-6AG4wmDsLb)\n\n![](https://ipfs.everipedia.org/ipfs/QmckpwbCV3UqKVAWKaHSzkhDA5fNP7a8nSbSPraeJRcNro)\n\n## How USDT0 Works\n\nUSDT0 utilizes a lock and [mint](https://iq.wiki/wiki/minting) mechanism within an omnichain framework to facilitate secure and efficient cross-chain transactions while ensuring full asset backing.\n\n1. **Asset Locking**: [USDT](https://iq.wiki/wiki/usdt0) is secured in a [smart contract](https://iq.wiki/wiki/smart-contract) on the [Ethereum](https://iq.wiki/wiki/ethereum) Mainnet.\n2. **Minting on Destination Chains**: Corresponding USDT0 tokens are created on the target blockchain, mirroring the locked assets on Ethereum. This 1:1 backing maintains transparency and trust.\n3. **Cross-Chain Transfers**: An advanced messaging layer enables efficient and cost-effective transfers between supported [blockchains](https://iq.wiki/wiki/blockchain), bypassing the need for fragmented [liquidity pools](https://iq.wiki/wiki/liquidity-pool) and bridges, thus ensuring fast and reliable transactions.\n4. **Redemption**: USDT0 tokens can be exchanged by unlocking the equivalent [USDT](https://iq.wiki/wiki/usdt0) on [Ethereum](https://iq.wiki/wiki/ethereum), maintaining a secure link between the locked and minted assets.  [\\[8\\]](#cite-id-5DmmLRr3jM)\n\n## Role of the OFT Model\n\n* **Unified Liquidity Management**: The OFT standard optimizes liquidity management across all connected chains, reducing fragmentation and enhancing capital efficiency.\n* **High Security**: Transactions are validated through a decentralized network of oracles and relayers, ensuring integrity and minimizing risks.\n* **Scalability**: The OFT model supports seamless integration with new blockchains, allowing USDT0 to expand into emerging ecosystems with ease.\n* **Efficiency**: By removing the need for intermediary bridges or wrapped assets, the OFT standard simplifies operations and reduces complexity. [\\[8\\]](#cite-id-5DmmLRr3jM)\n\n## Partnerships\n\n### Bitfinex\n\nUSDT0 is available for trading on [Bitfinex](https://iq.wiki/wiki/bitfinex), allowing users to deposit and withdraw the asset through Incochain and Arbitrum. This integration provides access to USDT markets on Bitfinex, one of the longest-standing cryptocurrency exchanges.  [\\[6\\]](#cite-id-mANB0sb5rX)\n\n![](https://ipfs.everipedia.org/ipfs/QmNUxGXV1MKd9aPsD9fkWEf9ufXyrUuvjsucCaaSzea7cE)\n\n### Plasma\n\nUSDT0 is integrating with Plasma, a network designed with a strong focus on Tether's ecosystem, which supports over 141 billion USDT. This integration facilitates fast and interoperable transactions with zero fees on USDT transfers. Plasma is set to launch soon, with USDT0 playing a key role from the outset.  [\\[7\\]](#cite-id-XARsPx7d1w)\n\n![](https://ipfs.everipedia.org/ipfs/QmU11a4fweFUfZocR1QzavQDqXxzf2c4x3ydk9y5JL69E7)","summary":"USDT0 is a cross-chain stablecoin launched by Tether, designed to enhance interoperability across blockchain networks. It offers unique cross-chain capabilities...","images":[{"id":"QmSEWXugpmbfU6JymvxJsyfPx3zN1XDUFqb1ubuVASE3Fj","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"Cryptocurrencies"}],"tags":[{"id":"Ethereum"},{"id":"Protocols"},{"id":"BinanceSmartChain"},{"id":"Stablecoins"},{"id":"Blockchains"}],"media":[{"id":"QmapE4f3xBBfKcPfW1EHyndz6TMkHBHkKiGEgJcLKn3Sza","size":null,"name":"1500x500 (2).jfif","type":null,"source":"IPFS_IMG"},{"id":"QmNUxGXV1MKd9aPsD9fkWEf9ufXyrUuvjsucCaaSzea7cE","size":null,"name":"GlXc2vMXQAAEEuG.png","type":null,"source":"IPFS_IMG"},{"id":"QmU11a4fweFUfZocR1QzavQDqXxzf2c4x3ydk9y5JL69E7","size":null,"name":"78E8Ryro.png","type":null,"source":"IPFS_IMG"},{"id":"QmckpwbCV3UqKVAWKaHSzkhDA5fNP7a8nSbSPraeJRcNro","size":null,"name":"Gm6XAejWEAAqmha.jfif","type":null,"source":"IPFS_IMG"}],"metadata":[{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/usdt0"},{"id":"twitter_profile","value":"https://x.com/USDT0_to"},{"id":"references","value":"[{\"id\":\"JVpPkGIgT3\",\"description\":\"The Defiant: 'Tether Launches Cross-Chain Stablecoin USDT0'\",\"timestamp\":1743206101898,\"url\":\"https://thedefiant.io/news/cefi/tether-launches-cross-chain-stablecoin-usdt0\"},{\"id\":\"Uun5qdgrYn\",\"description\":\"Mirror: 'USDT0: Your USDT, Anywhere'\",\"timestamp\":1743206286009,\"url\":\"https://mirror.xyz/tetherzero.eth/4z1kh9wE6h07zGjrKImx4Cr-VIzCpRle0VElalG0Rss\"},{\"id\":\"RmIvpvk0do\",\"description\":\"USDT0 Docs\",\"timestamp\":1743206666589,\"url\":\"https://docs.usdt0.to/\"},{\"id\":\"tx80eAW4d0\",\"description\":\"Crypto Slate: 'Tether partners with LayerZero to launch cross-chain stablecoin USDT0'\",\"timestamp\":1743206754204,\"url\":\"https://cryptoslate.com/tether-partners-with-layerzero-to-launch-cross-chain-stablecoin-usdt0/\"},{\"id\":\"6AG4wmDsLb\",\"description\":\"GateIO: What Is USDT0?\\n\",\"timestamp\":1743207138888,\"url\":\"https://www.gate.io/learn/articles/usdt0-what-is-it/6625\"},{\"url\":\"https://x.com/USDT0_to/status/1897665806718185764\",\"description\":\"USDT0 Tweet\",\"id\":\"mANB0sb5rX\",\"timestamp\":1743208227839},{\"url\":\"https://x.com/USDT0_to/status/1892227650854232410\",\"description\":\"USDT0 Tweet\",\"id\":\"XARsPx7d1w\",\"timestamp\":1743208332618},{\"url\":\"https://docs.usdt0.to/overview/how-usdt0-works\",\"description\":\"USDT0 Docs, How USDT0 Works\\n\",\"id\":\"5DmmLRr3jM\",\"timestamp\":1743208558220}]"},{"id":"arbiscan","value":"https://arbiscan.io/token/0xfd086bc7cd5c481dcc9c85ebe478a1c0b69fcbb9"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmTx8xoTCrcUgDYcw1S1YJFJoHVzM61MWtJi4dsc5MhhUJ\""},{"id":"commit-message","value":"\"Populate USDT0 details: founding event, blockchains, and founders.\""},{"id":"previous_cid","value":"QmTx8xoTCrcUgDYcw1S1YJFJoHVzM61MWtJi4dsc5MhhUJ"}],"events":[{"id":"892846a0-5023-47f8-a703-ea100ef404e4","date":"2025-01","title":"Token Founded","type":"CREATED","description":"USDT0 was founded."}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8AF7a19a26d8FBC48dEfB35AEfb15Ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":["arbitrum","ethereum","flare"],"founders":["brock-pierce","reeve-collins","craig-sellars","bryan-pellegrino","ryan-zarick","caleb-banister"],"speakers":[]}}