On January 17, 2025, Tether unveiled its Omnichain Fungible Token (OFT) standard, USDT0, designed to facilitate cross-chain transfers without intermediary bridges. This new standard will debut on Kraken's layer-2 blockchain, Ink, and is set to launch on Berachain and MegaETH shortly.
USDT0 allows users to mint tokens on the target chain in a 1:1 ratio to USDT locked on Ethereum, enhancing liquidity across connected chains. Tether CEO Paolo Ardoino emphasized that this innovation aligns with Tether's vision and aims to improve user experience by enhancing interoperability.
Currently, USDT is the largest stablecoin, boasting a supply of $141 billion, which is $100 billion more than its nearest competitor, USD Coin (USDC). The stablecoin has seen a 51% growth since January 2024 and recorded an aggregated transfer volume exceeding $10.5 trillion over the past year.
In response to the Markets in Crypto-Assets Regulation (MiCA) in the EU, Tether has ceased operations of its euro-backed token, EURt, while investing in compliant alternatives through partnerships with Quantoz and StablR.