Tether has officially launched its latest stablecoin innovation, USDT0, on Kraken’s Ethereum-based Layer 2 blockchain, Ink. This initiative will enhance the interoperability of USDT stablecoin across multiple blockchain ecosystems. Leveraging LayerZero’s Omnichain Fungible Token (OFT) standard, USDT0 offers seamless cross-chain asset transfers while maintaining a 1:1 backing with USDT on Ethereum.
Tether Partners With Kraken’s Ink L2 for USDT0 Stablecoin
In a recent announcement, Tether confirmed the deployment of its new USDT0 stablecoin on Kraken’s Layer 2 blockchain, Ink. This partnership marks a step in enabling smoother cross-chain transfers for Tether’s users.
USDT0 leverages LayerZero’s OFT standard to facilitate token transfers across multiple blockchains. The OFT framework ensures that every USDT0 token minted on a destination blockchain is backed by locked USDT on Ethereum. Consequently, this maintains the token’s stability and reliability.
Following the development, Tether CEO, Paolo Ardoino commented,
“USDT0 introduces a much-needed solution for seamless USDT movement across ecosystems. It’s exciting to see this innovation emerge and tackle real market demand.”
Notably, USDT0 debuted on Ink, Kraken’s Ethereum-based Layer 2 solution designed for institutional liquidity and optimized transaction speeds. The integration allows users to deposit and withdraw USDT0 seamlessly through Kraken’s platform.
Tether plans to expand USDT0 to other blockchain ecosystems, including Berachain and MegaETH. This move will enhance liquidity access and broaden the reach of USDT in decentralized finance (DeFi) applications across different chains.
Enhanced Liquidity and Efficiency with LayerZero Integration
USDT0 utilizes LayerZero’s Omnichain Fungible Token (OFT) standard to streamline liquidity and token transfers across blockchains. The LayerZero protocol enables secure, fast, and low-cost transactions by ensuring that every USDT0 token is fully backed by locked USDT on Ethereum.
More so, the integration with Kraken’s Ink provides institutional users with a reliable and secure environment for managing USDT0 transactions. This approach simplifies cross-chain operations while maintaining reliability and security.
CEO of LayerZero Labs, Bryan Pellegrino, expressed excitement with the partnership stating,
“Years in the making, USDT0 is one of the most exciting things we’ve seen in a very long time.”
Future Prospects For The Stablecoin Issuer
Tether’s collaboration with Kraken’s Ink and the use of LayerZero technology underlines its commitment to expanding USDT’s usability. The deployment of USDT0 is a step forward in establishing a unified liquidity layer across blockchains.
Moreover, as part of its expansion strategy, the stablecoin issuer has moved its base of operations to El Salvador. Tether secured a DASP license to legally issue stablecoins within the country.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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