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

Trump Says He Was Unaware of $500M UAE Investment in World Liberty Financial
Key Takeaways: US President Donald Trump denied knowledge of a $500 million UAE investment in World Liberty Financial.…

Crypto Industry and Banks at a Stalemate Over Stablecoin Yield Deal
Key Takeaways The White House has urged a compromise on stablecoin yields to progress Senate crypto legislation. Crypto…

Why Vitalik Buterin Sold Over 700 Ethereum (ETH) Despite Market Recovery
Key Takeaways Vitalik Buterin sold over 700 Ethereum not for market reasons but to finance long-term projects. The…

Binance Withdrawals Restored Following Temporary Disruption
Key Takeaways Binance faced technical difficulties affecting withdrawals, but services were quickly restored within 20 minutes. The disruption…

Asian Markets Stabilize as Bitcoin Trades Around $78K
Key Takeaways Bitcoin steadies at approximately $78,000 as Asian markets recover from recent volatility. Regional equities, including Japan’s…

Bitcoin Price Prediction: The Warsh Shock & The Stablecoin Summit—Is the Bull Case Dead?
Key Takeaways Kevin Warsh’s nomination as Federal Reserve Chair has caused a drop in liquidity for riskier assets,…

White House Continues to Negotiate Over Crypto Market Structure Bill
Key Takeaways The White House is pushing for a compromise on the contentious issue of stablecoin yields in…

Billionaire Michael Saylor’s Strategy Acquires $75M More Bitcoin – Is This a Bullish Sign?
Key Takeaways Michael Saylor’s Strategy has expanded its Bitcoin holdings by purchasing an additional 855 BTC for $75.3…

Polymarket Bettors Assign Over 70% Probability of Bitcoin Dropping Below $65K — Are They Correct?
Key Takeaways Polymarket users predict Bitcoin has a 71% chance of falling below $65,000 in 2026, reflecting market…

CFTC Regulatory Shift Could Unlock New Growth for Coinbase Prediction Markets
Key Takeaways Newly appointed CFTC Chair, Michael Selig, aims for a unified federal oversight approach for crypto-linked prediction…

We Hacked Perplexity AI to Predict the Price of XRP, Bitcoin, and Ethereum By the End of 2026
Key Takeaways Perplexity AI predicts XRP may soar to $8 by 2026, fueled by legal victories and supportive…

Current Crypto Price Predictions: An In-Depth Analysis of XRP, Dogecoin, and Shiba Inu
Key Takeaways XRP, Dogecoin, and Shiba Inu are experiencing significant price declines amid geopolitical uncertainties and general market…

Pepe Coin Forecast: Price Appears Dismal, Yet Savvy Investors Rally Behind the Scenes
Key Takeaways Pepe Coin has experienced significant price drops, yet indicators suggest it may soon bottom out, with…

BitMine Reports 4.285M ETH Holdings, Expands Staked Position With Massive Reward Outlook
Key Takeaways BitMine Immersion Technologies has reported significant crypto holdings valued at $10.7 billion. The company’s Ethereum holdings…

Crypto Exchanges’ Stock Plunge 60% as Trading Volumes Dwindle – Is the Decline Ending or Just Beginning?
Key Takeaways Trading volumes on major crypto exchanges have drastically fallen, with a nearly 90% drop from October…

Best Crypto to Acquire Now February 2 – XRP, Solana, Ethereum
Key Takeaways Recent market turmoil saw Bitcoin plunge dramatically, affecting all major cryptocurrencies. XRP, Solana, and Ethereum are…

Ethereum Price Prediction: Top ETH Bulls Face $7.6 Billion in Paper Losses as Price Drops Below $2,400
Key Takeaways Ethereum has faced a downturn, dropping 19% below $2,400, resulting in significant paper losses for major…

Shiba Inu Price Prediction: SHIB Just Crashed to a 3-Year Low – Is SHIB Heading Towards Zero?
Key Takeaways Shiba Inu has recently hit a significant low, experiencing a 15% drop that places it at…
Trump Says He Was Unaware of $500M UAE Investment in World Liberty Financial
Key Takeaways: US President Donald Trump denied knowledge of a $500 million UAE investment in World Liberty Financial.…
Crypto Industry and Banks at a Stalemate Over Stablecoin Yield Deal
Key Takeaways The White House has urged a compromise on stablecoin yields to progress Senate crypto legislation. Crypto…
Why Vitalik Buterin Sold Over 700 Ethereum (ETH) Despite Market Recovery
Key Takeaways Vitalik Buterin sold over 700 Ethereum not for market reasons but to finance long-term projects. The…
Binance Withdrawals Restored Following Temporary Disruption
Key Takeaways Binance faced technical difficulties affecting withdrawals, but services were quickly restored within 20 minutes. The disruption…
Asian Markets Stabilize as Bitcoin Trades Around $78K
Key Takeaways Bitcoin steadies at approximately $78,000 as Asian markets recover from recent volatility. Regional equities, including Japan’s…
Bitcoin Price Prediction: The Warsh Shock & The Stablecoin Summit—Is the Bull Case Dead?
Key Takeaways Kevin Warsh’s nomination as Federal Reserve Chair has caused a drop in liquidity for riskier assets,…