Tether has launched a new version of its stablecoin, USDT0, on the Layer 2 blockchain Ink, belonging to the Kraken exchange. This move aims to expand USDT's capabilities through cross-chain functionality.
Launch of USDT0 on Ink
On January 16, Ink announced that it had become the first blockchain platform chosen for the deployment of Tether's new token, USDT0. It is based on LayerZero’s Omnichain Fungible Token standard and aims to create a unified liquidity layer for cross-chain transfers.
Benefits of the New Token
USDT0 is designed to enhance the popularity of the world’s largest stablecoin, USDT, by offering benefits such as interoperability, improved liquidity, and accessibility. The LayerZero standard ensures it functions as a 'unified asset,' eliminating the need for liquidity pools and custom bridges.
Partnerships and Functionality of USDT0
The partnership with Ink makes USDT0 available on Kraken. Other partners include MegaETH and Berachain. USDT0 works by locking USDT on Ethereum and minting the token on Ink, maintaining a 1:1 backing with Tether’s USDT on Ethereum, allowing users to exchange them at any time.
The launch of USDT0 marks a significant step in stablecoin development, offering not only enhanced functionality but also increasing its accessibility and liquidity across various blockchains.
