Tether Selects Kraken’s Ink to Deploy its Cross-chain USDT0 Stablecoin

On Jan 16, 2025 at 7:55 pm UTC by · 3 mins read

Tether has chosen Ink, Kraken’s Ethereum-based layer-2 network, as the first platform for USDT0, with trading set to begin today at 15:00 UTC.

Tether, the world’s largest stablecoin issuer, has officially partnered with Ink, a layer-2 scaling network developed by Kraken, to introduce its new omnichain stablecoin, USDT0. This latest stablecoin iteration aims to enhance interoperability for USDT while unifying liquidity across multiple blockchains.

In a statement on Thursday, Kraken confirmed that USDT0 has been deployed exclusively on Ink and will be available for trading on its centralized exchange starting at 15:00 UTC today. Users will have access to deposit and withdrawal functionalities once the stablecoin goes live at the scheduled time.

A New Standard for Stablecoin Liquidity

Ink’s founder, Andrew Koller, emphasized that Tether’s decision to launch USDT0 on the layer-2 network marks a transformative moment for stablecoin liquidity across different blockchains.

“USDT0 and Ink share a commitment to ensuring users and developers have maximum control over their assets and the most seamless access to opportunities possible. USDT0 choosing Ink as its first chain is the beginning of a new standard for how stablecoin liquidity should flow across all chains in the future,” he said.

According to a separate statement, Tether explained that USDT0 was built on LayerZero’s Omnichain Fungible Token (OFT) standard to allow seamless and secure cross-chain transfers.

The company believes that this approach eliminates the need for independent deployments, liquidity pools, or bridging solutions, ultimately enhancing capital efficiency and simplifying asset transfers.

Future Expansion Plans

The stablecoin was also designed to address liquidity fragmentation by enabling effortless integration for developers and smooth user transactions across supported chains. Each USDT0 token is fully backed 1:1 with USDT locked on Ethereum, ensuring security.

Tether’s CEO Paolo Ardoino said the new stablecoin introduces a much-needed solution for seamless USDT movement across ecosystems.

“USDT0 introduces a much needed solution for seamless USDT movement across ecosystems. By improving interoperability and reducing friction, it enhances the user experience in ways that align with the broader vision of Tether. It’s exciting to see this innovation emerge and tackle real market demand,” said Ardoino.

Following its successful rollout on Ink, Tether intends to expand USDT0 to additional blockchains. The stablecoin is expected to launch on Berachain, an Ethereum-compatible Layer 1 blockchain utilizing the innovative Proof of Liquidity (PoL) consensus mechanism.

Additionally, Tether plans to introduce USDT0 on MegaETH, a high-performance blockchain capable of processing 100,000 transactions per second with sub-10ms block times while maintaining Ethereum’s security framework.

With this expansion, Tether continues to push the boundaries of stablecoin technology, driving greater efficiency and interoperability in the digital asset landscape.

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