Tether launches a new cross-chain stablecoin, USDT0, in collaboration with Kraken. The token will largely focus on interoperability.
The company is launching USDT0 on Kraken’s Ink Layer-2 network for the first time. Subsequently, it will expand to Berachain and MegaETH, with future expansion goals.
USDT0: a new Tether solution
Tether, one of the world’s largest stablecoin issuers, has had a turbulent few weeks. The new MiCA legislation has significantly reduced its EU operations, but the company has prepared sufficiently to avoid lasting damage.
Earlier this week, Tether announced a complete relocation to El Salvador and is now launching a new stablecoin USDT0.
“USDT0 introduces a much-needed solution for smooth movement of USDT across ecosystems. By improving interoperability and reducing friction, it improves the user experience in a way that aligns with Tether’s broader vision. It’s exciting to see this innovation emerge and meet real market demand,” said Paolo Ardoino, CEO of Tether.
Tether claimed that USDT0 would first launch on Ink, a Kraken-powered L2. This is a natural choice of partners, as the exchange has cooperated with Tether several times in the MiCA rollout.
According to Tether, USDT0 will be a cross-chain token that can “establish a transparent pathway for institutional liquidity.” Specifically, it will be a way to move USDT between blockchains as easily as possible, thereby boosting the growth of DeFi. With the tagline “Your USDT, Anywhere,” this new stablecoin will focus on interoperability.
USDT0 is already available on Ink, but Tether says its first wave expansion partners are already working on the features. The first are Berachain, a liquidity-focused L1 blockchain, and MegaETH, a promising project based on Ethereum. Additional partners will be announced in the coming weeks.
This new USDT0 stablecoin is expected to significantly improve the functionality of the entire Tether ecosystem. The company saw its profits rise significantly towards the end of 2024, and this asset is part of an ambitious investment for the new year.
It will take some time to determine the success of the USDT0 launch, but the move suggests confidence.
Overall, Tether’s USDT has seen increasing demand thanks to the current bull market. Growing demand and profits have allowed the stablecoin giant to target expansion through different avenues.
Earlier this month, Tether increased its Bitcoin reserve by $700 million. It also invested a similar amount in a decentralized video sharing platform, Rumble.
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