Tether's cross-chain stablecoin solution, USDT0, has been launched on Ink, a layer 2 blockchain by cryptocurrency exchange Kraken.

in advertisement On January 16, Inc. revealed that Tether had chosen it as the first blockchain to deploy the multi-use Tether chain (USDT) Extensibility and interoperability token, USDT0.

The new token is built on LayerZero's Omnichain Fungible Token standard and aims to accelerate USDT adoption by offering a “unified liquidity layer” for cross-chain transfers.

According to Tether, USDT0 is designed to boost adoption of the world's largest stablecoin by providing key benefits such as interoperability, increased liquidity, and improved user accessibility. Using LayerZero's OFT standard ensures that USDT0 operates as a “unified asset,” eliminating the need for dedicated liquidity pools or bridges.

“Today USDT is the world's most popular digital dollar and stablecoin, with hundreds of millions of users in emerging markets and developing countries... Continuing this trend, I believe USDT0 will help expand support for USDT across multiple blockchains, pushing the limits of scalability.” Interoperability forward,” commented Paolo Ardoino, CEO of Tether, via X.

The partnership with Ink makes USDT0 available on the Kraken exchange. Other projects in the first wave of partnerships include MegaETH and Berachain.

USDT0 works by locking USDT on Ethereum and minting the USDT0 token on Ink. This solution eliminates the liquidity fragmentation of USDT, providing a comprehensive experience for the community.

USDT0 maintains 1:1 support with Tether's USDT on Ethereum. Users can exchange USDT0 for USDT at a 1:1 ratio at any time.