TL;DR
- Tether launches its USDT0 token using Kraken’s Ethereum scaling layer, known as Ink, to optimize transfers between blockchains.
- USDT0 aims to become a unified liquidity layer through LayerZero’s Omnichain Fungible Token standard, offering greater efficiency and scalability.
- The collaboration strengthens the focus on innovation and security for both Tether and Kraken, two leaders in the crypto ecosystem.
In a move that promises to enhance interoperability in the crypto ecosystem, Tether has launched its new USDT0 token on Ink, Kraken’s Ethereum Layer 2 scaling solution. This significant launch marks a milestone in the evolution of stablecoins by embracing a unified liquidity system that will simplify and optimize USDT transfers across multiple blockchains.
USDT0 leverages LayerZero’s Omnichain Fungible Token standard, which enables the efficient minting, burning, and movement of tokens across different blockchains. According to Paolo Ardoino, Tether’s CEO since 2023, this ambitious project reflects the spirit of innovation that has defined the company in recent years, alongside other initiatives such as Bitcoin mining in El Salvador and an internal research team for advanced artificial intelligence developments.
Meanwhile, Kraken, founded in 2011, has taken an aggressive approach to expansion and technological innovation. In December 2024, it launched Ink, its Optimism-based Layer 2 solution, with significant advancements in its early weeks, such as its integration into the Optimism Security Council and the deployment of the decentralized exchange Velodrome, which is already showing promising results.
Collaboration Built on Trust and Proven Technology
Andrew Koller, the lead developer of Ink, emphasized that the partnership with Tether was accelerated due to Kraken’s strong reputation for security and the technological reliability of the OP Stack.
“Both companies share a focus on rapid experimentation and rigorous security to deliver the best for users,”
Koller stated.
Tether, known for being extremely cautious when adopting new chains, selected Ink after evaluating its stability, efficiency, and technological reliability. The integration did not involve any financial exchange, highlighting the strategic alignment between both companies and their long-term vision.
In addition to bringing liquidity to applications like Velodrome, USDT0 also aims to improve the user experience on Ink. According to Koller, the goal is to eliminate the complexity of moving assets between chains, providing a more intuitive, secure, and efficient flow for users.
This development represents a key step in the evolution of stablecoins toward greater interoperability and usability, further reinforcing the unwavering commitment of Tether and Kraken to innovation and excellence in the crypto space.
