Tether launches cross-chain stablecoin USDT0 on Kraken’s Ink L2

Launched by Kraken, the Ink network is the first Ethereum layer-2 to deploy the cross-chain stablecoin USDT0, the exchange said in its blog.

Ink is built on Optimism’s technology and is compatible with all networks on the OP Stack.

Kraken’s rivals have launched their own OP-based DeFi layer-2s, including Coinbase’s Base and Unichain from Uniswap.

The stablecoin’s issuer plans to turn USDT0 into a “unified liquidity layer” for L2s to simplify token transfers across the crypto ecosystem.

The stablecoin uses LayerZero’s Omnichain Fungible Token standard, designed to mint and burn the asset across multiple chains.

USDT0 enables seamless and secure cross-chain transfers without the need for separate deployments, pools or intermediary solutions. The structure improves capital efficiency and simplifies moving assets between networks.

Speaking to The Block, Ink head Andrew Koller explained that USDT0 will bring liquidity to dapps such as Velodrome and improve the user experience on Ink and other L2s.

In November, Kraken and Tether funded the launch of EU‑regulated stablecoins.

Also in November, Tether decided to cease support for the euro-denominated EURT stablecoin.

By November 2024, MiCA‑compliant stablecoins such as EURC, Societe Generale’s EURCV and Banking Circle’s EURI accounted for a record 91% market share.