✨ In the crypto world, USDT (Tether) has been the largest stablecoin in the world with hundreds of billions of dollars in circulation. However, as blockchains become increasingly fragmented (Ethereum, Solana, Arbitrum, Polygon, Berachain, MegaETH, Ink...), traditional USDT faces issues: liquidity is fragmented, complex bridges must be used, high fees, hack risks, or wrapped tokens (like USDT.e) are not unified.

In January 2025, Tether partnered with LayerZero to launch USDT0 – the omnichain version of USDT, completely addressing the issue of fragmentation.

What is USDT0 really?

💰 What is USDT0?

USDT0 is a stablecoin pegged 1:1 with real USDT (backed by USDT locked on Ethereum Mainnet). It uses the OFT standard (Omnichain Fungible Token) from LayerZero to become a native token on multiple chains without needing to be wrapped or traditional bridging.

Simple operational mechanism:

  • Lock USDT on Ethereum → mint corresponding USDT0 on the target chain (Arbitrum, Polygon, Ink, Berachain...).

  • Reverse transfer: burn USDT0 on the source chain → unlock USDT on Ethereum.

  • All cross-chain transfers are verified decentralized through LayerZero messaging (DVN + Executor), safer than old bridges, low fees (usually just gas + small fees if any), fast speed.

USDT0 is not "a separate ERC-20" but an ERC-20 + OFT extension – meaning dApps, wallets, DEXs integrate like regular ERC-20s, but with cross-chain superpowers. To date, USDT0 has processed over $50 billion cumulative transfers, supports 15+ chains, and is rapidly expanding.

⭐ What is OFT token?

OFT (Omnichain Fungible Token) is a token standard developed by LayerZero, allowing fungible tokens (like stablecoins, governance tokens, yield-bearing assets) to move freely between chains as a single token.

Instead of:

  • Multi-chain: separate deploys, fragmented liquidity.

  • Cross-chain bridge: lock → wrap → unwrap, high risk.

OFT uses burn-and-mint (or lock-and-mint) + immutable messaging, maintaining a unified total supply across the network (on all blockchains). OFT tokens operate natively on all chains supporting LayerZero (currently 80+ chains, from EVM to non-EVM like Solana).

✅ Benefits of OFT token (and USDT0)

  • Unified liquidity: No more separate pools for each chain → smooth swap, lend, trade, low slippage, deep liquidity.

  • Super simple user experience: Transfer tokens between chains without complex network switching, no unwrapping.

  • Safer: Reduced risk of bridge hacks (like Ronin, Wormhole in the past), decentralized verification, organizational standards.

  • Low & fast fees: Just gas + minimal fees, no need for separate liquidity pools.

  • Developer-friendly: Easy integration (like ERC-20), gas abstraction (pay gas fees from source chain), composable cross-chain.

🔹 Potential future applications of OFT

OFT is not just for stablecoins but is the foundation for on-chain money & future assets:

  • DeFi omnichain: Cross-chain lending, yield farming, perpetuals with unified liquidity (e.g., Ondo Finance USDY, PayPal PYUSD has used OFT).

  • RWA (Real World Assets): Tokenized stocks, bonds, T-bills move seamlessly between chains (Ondo Global Markets has tokenized over 100+ stocks/ETFs).

  • Gaming & NFT: Omnichain items, in-game currency easily transferred between chains.

  • Cross-border payments: Reduce fees, delays, intermediaries – turning crypto into "better money" for institutions.

  • Multi-chain dApps: Governance, DAO vote cross-chain; universal nameservices; yield aggregation across the network.

With hundreds of OFTs already deployed (total value > $90 billion), LayerZero is leading the trend of "default is many chains" – where every asset is omnichain from the start. USDT0 is just the beginning: Tether aims to make Tether (USDT, XAUT, CNHt...) the de-facto asset issuer on every chain.

💦 In summary, USDT0 is not "a new stablecoin" but an evolved USDT – omnichain, unified, more secure. This is the future of stablecoins and the entire crypto: no more fragmentation, just unified liquidity and a smooth experience.

😘 Have you tried USDT0 on any chain? Share your thoughts below! 🚀

@Plasma #plasma $XPL

#USDT0 #BinanceSquare #ThuyBNB

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⚠️ Disclaimer

  • This article is for informational and educational purposes only, NOT investment advice.

  • Cryptocurrency (crypto) is highly risky; you could lose your entire investment.

  • Always DYOR (Do Your Own Research before investing).

  • Only invest money that you can afford to lose.

😍 Thank you for reading! If you have any comments or opinions, please leave them below! 😘