Tether integrates Arbitrum to unify USDT networks across multiple blockchains
Tether integrates Arbitrum to unify USDT networks
Tether has chosen Arbitrum, a leading Layer 2 scaling solution on Ethereum, as the infrastructure for its latest cross-chain initiative, Legacy Mesh.
The move aims to streamline USDT transfers across multiple blockchains without requiring wrapped tokens or traditional bridging mechanisms, according to Decrypt.
This development follows the launch of USDT0, a new Tether token introduced in January to facilitate smoother cross-chain transactions. Pegged one-to-one with Tether’s flagship stablecoin, USDT, the USDT0 token operates on LayerZero’s Omnichain Fungible Token (OFT) standard.
This technology enables direct transfers across blockchain networks, eliminating the inefficiencies associated with token wrapping.
Arbitrum as the central hub for USDT liquidity
Arbitrum will serve as a “hub chain,” linking USDT deployments across Ethereum, Tron, Ton, Ink, Berachain, and its own network. The integration is expected to enhance liquidity and efficiency, making it easier for users and developers to access stablecoin markets across multiple blockchains.
Steven Goldfeder, CEO of Offchain Labs, the team behind Arbitrum, described the initiative as a “major milestone,” emphasizing its role in improving liquidity and usability for stablecoin holders.Tether’s growing focus on interoperability extends beyond Ethereum. In January, the company integrated Bitcoin’s Lightning Network, allowing for faster and cheaper USDT transactions.
Meanwhile, its financial strength remains robust, with Tether reporting a record $13 billion in net profits for 2024 and increasing exposure to U.S. Treasuries.
Despite its success, the company continues to face regulatory scrutiny. U.S. policymakers, including Commerce Secretary nominee Howard Lutnick, have voiced support for greater oversight of stablecoin reserves.
By integrating Arbitrum, Tether is positioning itself at the forefront of blockchain interoperability, reinforcing USDT’s dominance as the world’s largest stablecoin.
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