Tether, the issuer of the largest stablecoin USDT, announced the launch of a new omnichain stablecoin USDT0 on the Kraken platform. Access to deposits and withdrawals of tokens has been available since January 16.
USDT0 is based on the Omnichain Fungible Token (OFT) standard from LayerZero. This technology enables secure cross-chain transactions, eliminating the need for bridges, liquidity pools, or separate launches on different blockchains. It is interesting to see if this is an attempt to circumvent MiCA restrictions, as only 4 companies have received licenses in the EU as of the end of 2024, and Tether is not among them.
What USDT0 offers:
- Liquidity unification. USDT0 simplifies token exchange between supported blockchains, reducing liquidity fragmentation.
- Transparency and security. Each USDT0 token is backed 1:1 by USDT, locked on Ethereum.
- However, this token is designed to work on Ink, Kraken’s Layer 2 network, which is part of the Optimism Superchain. Thus, USDT0 deposits must be made exclusively through the supported network.
Ink — a DeFi-focused Layer 2 solution developed to optimize capital and enhance user experience. This is the first time the Ink network is used for launching tokens by Tether.
“USDT0 will help eliminate difficulties with using liquidity across blockchains. We are excited to collaborate with Tether on this innovation,” — said Andrew Koller, developer of the Ink network and project head at Kraken.
For Kraken users, access to deposits is available under the “Funding” tab. It is important to note that deposits should only be made through the Ink network, as transactions through other networks are not supported (i.e., you may lose funds).
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