USDT0 (USDT0)

USDT0 (USDT0) is an omnichain version of Tether’s USDT stablecoin, built on LayerZero’s Omnichain Fungible Token (OFT) standard. Instead of existing as separate wrapped copies on each network, USDT0 is designed as a single canonical representation of USDT that can move across more than a dozen supported chains, including Arbitrum, Ink, Berachain and Unichain, without relying on traditional liquidity pool bridges.

USDT0 is backed through a lock and mint mechanism: USDT held on Ethereum is locked in a contract, and an equivalent amount of USDT0 is minted 1:1 on the destination chain. Redemption works in reverse: USDT0 is burned on the source chain, and the corresponding USDT is unlocked on Ethereum. Tether, the issuer of the underlying USDT, retains the ability to freeze the locked reserve, so ultimate control of the peg still sits with Tether’s treasury even though day to day cross chain transfers are coordinated through LayerZero’s messaging protocol.