USDT Expands Reach with Omnichain Stablecoin USDT0

The world's largest stablecoin, USDT, has expanded its reach beyond Ethereum and Tron by launching an omnichain version called USDT0. This new token allows USDT to operate on blockchains where Tether does not have a native contract.

USDT0 is built on LayerZero's Omnichain Fungible Token standard, which ensures that the token is minted and burned across chains using burn-and-mint messaging. The collateral for USDT0 is locked in an Ethereum vault, while claims are minted elsewhere.

The system has scaled quickly, with over $50 billion in cumulative transfers by late 2025 and daily volumes reaching hundreds of millions. USDT0 has also become the native gas token of Stable's payments chain.

Tether operates the system through a license agreement with Everdawn Labs, rather than directly managing it. This arrangement defines the trust stack for holders, which includes Tether's reserve risk, the lockbox contract, LayerZero's verification layer, and Everdawn's operational competence.