Tether launches new cross-chain stablecoin, USDT0, in partnership with Kraken. This token is mainly aimed at interoperability.
The company will launch USDT0 initially on Kraken, Ink’s L2 network. Will then expand to Berachain and MegaETH, with future expansion goals.
USDT0: New solution from Tether
Tether, one of the world’s largest stablecoin issuers, has had an eventful few weeks. The new MiCA law has severely limited Tether’s operations in the EU, but the company is prepared enough to avoid long-term damage.
Earlier this week, Tether announced the completion of their relocation to El Salvador, and now they are debut new stablecoin USDT0.
“USDT0 provides the solution needed for smooth USDT movement between ecosystems. By improving interoperability and minimizing friction, it enhances the user experience in a way that is consistent with Tether’s broader vision. It is exciting to see this innovation emerge and meet a real market need,” said Paolo Ardoino, CEO of Tether.
Tether said USDT0 will launch first on Ink, an L2 powered by Kraken. This was a natural choice of partnership as the exchange has worked with Tether on many events related to the MiCA implementation.
According to Tether, USDT0 will be a cross-chain token that can “establish a seamless path for institutional liquidity.” Specifically, this will be a tool to transfer USDT between chains as easily as possible, promoting the development of DeFi. With the tagline “Your USDT, everywhere,” this new stablecoin will focus on interoperability.
USDT0 is already live on Ink, but Tether says initial scaling partners have already begun work on the functionality. 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 functionality throughout Tether’s ecosystem. The company delivered impressive financial results at the end of 2024, and the asset is part of an ambitious investment into the new year.
It will take some time to gauge the success of the USDT0 launch, but the move shows Tether’s confidence.
In summary, an increase in demand for Tether’s USDT has been seen in the current bull market. Growing demand and profits have allowed this stablecoin giant to aim for expansion across different channels.
Earlier this month, Tether increased its Bitcoin reserves by $700 million. They also invested the same amount in a decentralized video sharing platform, Rumble.