Tether has issued a "new stablecoin" - what are the differences between USDT 2.0 and USDT?
Today, Tether announced the first deployment of its new token USDT0 on Kraken's Ethereum Layer 2 network Ink, aiming to leverage LayerZero's Omnichain Fungible Token Standard to develop a cross-chain liquidity layer, simplify USDT's cross-chain transfers, and provide a seamless user and developer experience.
As a stablecoin previously launched by Tether, USDT has become the world's largest single stable asset. However, stablecoin liquidity is currently fragmented, with USDT on different chains unable to freely move across chains, and high cross-chain costs have always deterred ordinary investors. The introduction of USDT0 aims to address this issue. On the one hand, through collaboration with LayerZero, it significantly enhances the security of cross-chain transactions. On the other hand, it achieves zero-friction cross-chain transfers (as shown in the example below), expanding the business scope of USDT and enhancing its practicality on the blockchain.
Tether's CEO Paolo Ardoino stated: "USDT0 has brought a much-needed solution to enable the seamless circulation of USDT across different ecosystems. By enhancing interoperability and reducing barriers, it aligns with Tether's overall vision, optimizing user experience. It is truly exciting to see such innovation emerge and effectively meet market demands."
Significantly Reducing Cross-Chain Costs
USDT has always had interoperability, but in a fragmented way. Each blockchain has its own USDT, and to transfer USDT between different chains, one must rely on solutions like cross-chain bridges, i.e., burning USDT on one chain and minting it on another.
With USDT0, the situation is different: now USDT has become a single, liquid asset across various blockchains, no longer fragmented. More precisely, the same token can smoothly move between different networks.
For users, USDT0 eliminates the fragmentation issue, meaning higher capital efficiency. Below is an example of transferring 10,000 USDT from Ethereum to Avalanche (left) and now using USDT0 empowered by LayerZero (right). As seen, with USDT0, users receive exactly what they transfer cross-chain, significantly reducing expensive transaction fee losses.

Expansion Plan
Ink: The Gateway to Institutional Liquidity
USDT0 will first be launched on Ink, an L2 blockchain introduced by Kraken, one of the world's largest and most trusted cryptocurrency exchanges. Utilizing the world's largest stablecoin, USDT0 has built a seamless channel for institutional liquidity between entities.
Andrew Koller, the founder of Ink, stated: "Both USDT0 and Ink are committed to ensuring that users and developers have maximum control over their assets and can seamlessly access various opportunities. USDT0 has chosen Ink as its launch chain, which will set a new standard for the flow of stablecoin liquidity across all chains in the future."
Furthermore, USDT0 has integrated with Kraken, allowing users to deposit and withdraw USDT0 on Ink. There are plans for more integrations within the Kraken tech stack, which will set standards for USDT0's interoperability and pave the way for a world-class experience for USDT users.
Initial Partnerships and Expansion: Berachain and MegaETH

Following Ink, the initial partners for USDT expansion through USDT0 include Berachain and MegaETH, with more related announcements to be released in the coming weeks.
Berachain is a layer-one (L1) blockchain fully compatible with the Ethereum Virtual Machine (EVM), built on an innovative Proof of Liquidity (PoL) consensus mechanism. This mechanism rewards users who actively contribute resources to the network with the network's native governance token, $BGT. The integration of USDT0 on Berachain will launch on the Boyco platform, which aims to directly funnel funds into core applications on Berachain. Boyco consists of 11 decentralized applications and 15 asset issuers (including USDT0) and serves as an ideal channel for yield-seeking reserves on Berachain. The Boyco treasury has already attracted over $1.5 billion in deposits, and with the launch of official projects and the addition of high-value assets like USDT0, this number is expected to grow significantly.
MegaETH is the first real-time blockchain capable of processing 100,000 transactions per second with a sub-10-millisecond block time, while inheriting Ethereum's security. MegaETH looks forward to leveraging USDT0 in a wide range of DeFi applications and payment products. Combining real-time applications with Tether's distribution capabilities will accelerate the adoption of the next wave of cryptocurrencies.
Overall, USDT is the world's largest stablecoin and the most sought-after on-chain asset by users and the blockchain itself. USDT0 is a scalability solution for USDT that addresses the issue of high cross-chain transaction costs, making USDT and even the entire cryptocurrency ecosystem more user-friendly.
You may also like

Web3 is sick, but the cure is not AI

Why must Web3 projects be included in RootData?

Fluid Announces Updates on Resolv Hack Recovery and Compensation Plan
Key Takeaways Fluid has repaid approximately $70 million related to USR debts on the BNB and Plasma chains.…

Binance to Delist Key Spot Trading Pairs: What You Need to Know
Key Takeaways Binance is set to remove several spot trading pairs on March 27, 2026, at 11:00 AM…

Whale Activities in the Crypto Market: A Deep Dive into Recent Trends
Key Takeaways A significant whale deposit occurred 3 hours ago when 5.5 million USDT was moved to Binance…

Circle and Tether Freeze Iranian Exchange Wallex Wallet with $2.49M Assets on Hold
Key Takeaways Circle and Tether have frozen a significant amount of assets from an Iranian exchange called Wallex,…

James Wynn Engages in High-Leverage Bitcoin Short Position
Key Takeaways James Wynn recently opened a 40x leveraged short position on Bitcoin. His position involves 2.69 BTC,…

Major Whale Opens Significant 20x Leveraged Positions in ETH and BTC
Key Takeaways Whale 0x049b has executed large 20x leverage positions on 9,256 ETH and 282.47 BTC, totaling over…

New Whale Activity: 33,998 ETH Withdrawn from Kraken
Key Takeaways A new Ethereum whale with the address starting 0xD77 has withdrawn 33,998 ETH from Kraken. The…

Bernstein’s Insight: Bitcoin’s Potential Trajectory Toward $150,000 by End of 2026
Key Takeaways Bernstein predicts Bitcoin could rise to $150,000 by the end of 2026. The market is shifting…

Why Is The Crypto Market Up Today?
Key Takeaways The cryptocurrency market experienced a $114 billion surge, with Bitcoin leading by breaking above $71,000. Bitcoin’s…

SlowMist’s Latest Alert: A Deep Dive into LiteLLM’s Data Breach
Key Takeaways SlowMist identifies a major breach in the LiteLLM library, with approximately 300GB of sensitive data compromised.…

SpaceX Stock Prediction: Hitting $1,200 at 2026 IPO?
Key Takeaways Elon Musk confirms SpaceX is advancing its IPO plans, with expected filing as early as weeks…

Safello’s Bittensor Staked TAO ETP on Nasdaq Stockholm: A New Horizon
Key Takeaways: Bittensor Staked TAO ETP (STAO) by Safello is now listed on Nasdaq Stockholm. The ETP offers…

Bittensor (TAO) +18%: Essential Insights for Investors
Key Takeaways: The Bittensor (TAO) market has shifted from speculative potential to verified utility, marking an 18% rise…

Bittensor Surge: Understanding the TAO’s Bullish Performance and Institutional Inflows
Key Takeaways: Bittensor (TAO) is regarded as a key asset for institutional investors with a recent listing on…

Bittensor (TAO) Price Surge Sparks Intrigue: Is a Breakout Above Resistance Near?
Key Takeaways: Bittensor’s TAOUSD price has surged over 66%, breaching the $300 mark for the first time since…

Ethereum Price Prediction: Navigating Scaling, Security, and AI in 2026
Key Takeaways: Ethereum price remains in a critical range between $2,100–$2,350, with directional control uncertain. Vitalik Buterin’s criticisms…
Web3 is sick, but the cure is not AI
Why must Web3 projects be included in RootData?
Fluid Announces Updates on Resolv Hack Recovery and Compensation Plan
Key Takeaways Fluid has repaid approximately $70 million related to USR debts on the BNB and Plasma chains.…
Binance to Delist Key Spot Trading Pairs: What You Need to Know
Key Takeaways Binance is set to remove several spot trading pairs on March 27, 2026, at 11:00 AM…
Whale Activities in the Crypto Market: A Deep Dive into Recent Trends
Key Takeaways A significant whale deposit occurred 3 hours ago when 5.5 million USDT was moved to Binance…
Circle and Tether Freeze Iranian Exchange Wallex Wallet with $2.49M Assets on Hold
Key Takeaways Circle and Tether have frozen a significant amount of assets from an Iranian exchange called Wallex,…
