Tether Launches Crosschain Stablecoin USDT0 on Arbitrum One to Enhance Stablecoin Interoperability
Tether, the issuer of the world’s largest stablecoin, has selected Arbitrum as its main infrastructure to power USDT0, its new crosschain stablecoin. Arbitrum One will serve as a central bridge connecting USDt on multiple major blockchains – Ethereum, Tron, TON, and Celo – to USDT0. This initiative represents a significant advancement in improving stablecoin interoperability, a crucial challenge for the crypto ecosystem.
The choice of Arbitrum is based on its Legacy Mesh technology, which enables native transfer of stablecoins between chains without compromising liquidity or transaction speed. According to Offchain Labs CEO Steven Goldfeder, this innovation ensures users and developers have access to deep and liquid markets, regardless of the blockchain they use.
Tether Strengthens Its Dominance in the Stablecoin Market
With a market capitalization surpassing $141 billion, USDT alone accounts for over 61% of the global stablecoin market, which amounts to $230 billion. Its main competitor, Circle’s USDC, lags far behind with a circulation of $59 billion. This dominance reflects the widespread and growing adoption of USDT on exchanges and in international payments, despite European restrictions.
The launch of USDT0, in partnership with LayerZero, began on January 16, 2024, with an initial implementation on Ink, the scaling solution developed by exchange Kraken. This crosschain stablecoin aims to further streamline multi-chain transactions and facilitate exchanges between different blockchain networks.
An Ultra-Profitable Business Model Despite Uncertainties
Despite regulatory uncertainties, particularly in Europe, Tether continues to report record profits. In 2024, the company recorded $13 billion in profits, largely generated by returns from its vast portfolio of US Treasury bonds. By the end of the year, the value of this portfolio reached $113 billion, exceeding the monetary reserves of over 170 countries.
This success is attributed to the rapid growth of stablecoins in the crypto ecosystem and their adoption in cross-border payment services. According to Chainalysis, the use of stablecoins for international remittances is one of the most revolutionary use cases in the industry. Sending $200 in stablecoins from sub-Saharan Africa costs approximately 60% less than traditional banking methods, highlighting the efficiency of this technology compared to traditional financial infrastructure.
Towards Broader Adoption of Crosschain Stablecoins
With USDT0, Tether continues its expansion and strengthens its leadership in a rapidly evolving market. The integration of Arbitrum to optimize the interoperability and liquidity of its stablecoins could accelerate the adoption of crosschain payments, a strategic segment for the future of digital finance.
