What is USDT0?

USDT0 is Tether's revolutionary cross-chain stablecoin solution that eliminates the barriers between blockchain networks. Launched in January 2025, USDT0 maintains 1:1 backing with USDT on Ethereum while enabling seamless transfers across multiple blockchain ecosystems without traditional bridging complications.

Unlike conventional wrapped tokens that fragment liquidity and introduce security risks, USDT0 represents a native omnichain approach to stablecoin interoperability that preserves the trusted backing users expect from Tether's ecosystem.

USDT0 is built using LayerZero's Omnichain Fungible Token standard, which fundamentally changes how stablecoins move between chains. The protocol uses a lock-and-mint mechanism where USDT is locked on Ethereum and the same amount of USDT0 is minted on the destination chain, so parity is always 1 USDT0 = 1 USDT.

This approach eliminates the need for wrapped tokens or separate liquidity pools, addressing the core challenge of stablecoin liquidity fragmentation that has long plagued the DeFi ecosystem.

USDT0 eliminates the need for traditional bridging solutions, which often involve liquidity pools and can expose users to risks such as bridge exploits or price slippage. The omnichain fungible token architecture offers direct security guarantees, eliminating the need for third-party bridge operators.

USDT0 enables users to access deep, unified stablecoin liquidity across supported networks without the friction typically associated with cross-chain operations.

Users can transfer USDT0 between supported blockchains in minutes rather than hours, with transfers validated through LayerZero's decentralized security model involving oracles and relayers. For practical cross-chain transfers, users can access USDT0 through platforms like the Eco Portal for competitive rates and a simplified user experience.

USDT0 initially launched on Kraken's Ink Layer 2 network and has expanded to include Berachain, MegaETH, and other Ethereum-compatible chains. The protocol's design allows for permissionless expansion to additional networks, positioning it as a scalable solution for the growing multi-chain landscape.

Stablecoin liquidity is fragmented across chains and bridges that bring extra fees, delays and attack surfaces, but USDT0's omnichain approach directly addresses these limitations by providing native interoperability without compromising on security or user experience.

The launch of USDT0 represents a significant step toward solving the interoperability challenge that has limited stablecoin utility across multiple blockchain networks. As the stablecoin market's future hinges on its ability to adapt to an omnichain world, USDT0 positions Tether at the forefront of this technological evolution.

For businesses and developers, USDT0 offers access to USDT's $140+ billion market cap across multiple chains without the operational complexity of managing separate token deployments or bridge integrations.

Bottom Line: USDT0 transforms how USDT moves across blockchain networks by providing native cross-chain functionality with 1:1 backing, eliminating traditional bridging risks while enabling seamless access to unified stablecoin liquidity across multiple ecosystems.