Tether has launched its omnichain-stablecoin USDT0 on the Kraken exchange’s Ink network

The asset will allow USDT to move seamlessly between different blockchains

17.01.2025 - 09:15

4 min

What’s new? Stablecoin issuer Tether used the Layer 2 (L2) Ink network from centralized crypto exchange (CEX) Kraken to first launch its new USDT0 token. This asset is designed to further introduce the largest stablecoin on the market, USDT, whose capitalization exceeds $137,45 billion.

Source: X.com

What else is known? USDT0 offers benefits such as interoperability, pooled liquidity, improved user accessibility, and easy integration into developer applications.

As such, the asset will allow USDT to be seamlessly and securely mixed between networks, eliminating the need for liquidity pools or third-party cross-chain protocols (bridges).

USDT0 utilizes LayerZero’s Omnichain Fungible Token (OFT) standard, a relay designed to issue and use tokens across different blockchains.

PayPal adds LayerZero support for PYUSD transfers

Users of non-custodial solutions will be able to transfer assets without centralized intermediaries

To use the asset, you need to lock the desired amount of USDT on the Ethereum blockchain, after which a similar amount of USDT0 will be issued on the Ink network and available to move seamlessly between different networks. You can redeem USDT0 and get your USDT back at a 1:1 ratio at any time.

Thanks to the partnership with Ink, the new asset is available on the Kraken exchange. Other projects in the first wave of the partnership include MegaETH and Berachain.

“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. While competitors focus on the rich crowds (bankers, ...), Tether always prioritizes the unbanked that for a long time struggled to have access to basic financial services and the normal people that live in high-inflation countries and want exposure to the U.S. Dollar.

I believe that USDT0 will help scaling the support of USDT across many more blockchains, pushing the boundaries of interoperability forward,” said Tether CEO Paolo Ardoino.

Source: X.com

As for Ink, a network for decentralized applications (dApps) was launched by the Kraken exchange based on the Ethereum blockchain in early 2025. It is part of the Optimism ecosystem as it uses OP Stack, the most popular architecture for creating rollups with over 40 active networks.