Kraken's Ink Layer 2 chosen by Tether for USDT0 token launch
Kraken's Ink Layer 2 chosen by Tether for USDT0 token launch
Tether, the issuer of the world’s most widely used stablecoin, has announced the deployment of its new cross-chain token, USDT0, on Kraken’s Ethereum-based Layer 2 network, Ink. According to Tether, this move aims to create a "unified liquidity layer," making it easier to transfer USDT across various blockchain ecosystems.
The USDT0 token leverages LayerZero’s Omnichain Fungible Token standard, which allows seamless minting and burning of tokens across different chains. Paolo Ardoino, who became Tether’s CEO in late 2023, has spearheaded a series of innovative projects, including Bitcoin mining operations in El Salvador and an AI research division. The introduction of USDT0 aligns with Tether’s broader strategy to enhance liquidity and usability for its stablecoin, which is already the most liquid and widely utilized in the market, reports The Block
Kraken’s Ink network, launched in December 2024, serves as the foundation for this initiative. Built using the OP Stack technology from Optimism, Ink has quickly garnered attention for its security and technical robustness. Andrew Koller, a Kraken veteran who led Ink’s development, emphasized the collaborative nature of the partnership, noting Tether’s rigorous security standards and Kraken’s proven track record.
Strategic growth for both Tether and Kraken
The partnership highlights a period of rapid experimentation for both companies. Kraken, founded in 2011, recently streamlined its operations to focus on innovation, launching new products like Velodrome, a decentralized exchange on Ink. Tether’s choice of Ink reflects confidence in Kraken’s infrastructure and the OP Stack technology.
USDT0’s integration could significantly enhance user experience by simplifying the process of transferring funds across chains. As Koller noted, "It shouldn't feel like you have to do all these hops to get there." This streamlined approach positions USDT0 to become a vital tool for improving liquidity and accessibility within the decentralized finance ecosystem.
With Tether and Kraken pushing boundaries in blockchain innovation, the introduction of USDT0 marks a pivotal step toward unified liquidity solutions. Market participants will watch closely as the new token’s impact unfolds, particularly its potential to set standards for cross-chain interoperability and user convenience.
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