Cooperating With Ink Kraken, Tether Launches New Stablecoin USDT0

Tether issues a new stablecoin. (Photo; Doc. Remitano)

USDT stablecoin publisher Tether officially announced the launch of a new stablecoin called USDT0. This launch is the result of Tether's collaboration with Ink, Kraken's layer-2 network.

The launch of USDT0 aims to increase USDT interoperability and unite liquidity on various blockchains. Using the latest technology, Tether hopes to facilitate transactions between networks that were previously fragmented.

In a statement released by Kraken on Thursday, January 16, USDT0 will start trading exclusively on the Ink platform at 15:00 UTC. Users can also make deposits and withdrawals after this stablecoin is officially launched on schedule.

Ink, founded by Andrew Koller, called the launch of USDT0 an important step in changing the way stablecoin liquidity flows across blockchain. Koller explained that Tether's decision to launch USDT0 on this layer-2 network is the start of a new standard in more efficient stablecoin liquidity flows in the future.

USDT0 builds on top of LayerZero's Fungible Token Omnichain (OFT) standard, which allows smoother and more secure inter blockchain transfers. This eliminates the need for separate settings, collections of liquidity, or linking solutions, thereby increasing capital efficiency and simplifying asset transfer processes.

Tether CEO Paolo Ardoino added that USDT0 will bring a much-needed solution to facilitate USDT movement between ecosystems. After successfully launching at Ink, Tether plans to expand USDT0 to other blockchains, such as Berachain which is compatible with Ethereum and MegaETH which are capable of processing 100,000 transactions per second with a block time of less than 10 ms, while maintaining the Ethereum security framework.