USDT0 Unlocks Tether's Stable Dollar for Cross-Chain Use
USDT0 is an omnichain version of Tether's USDT stablecoin that allows it to operate on blockchains where a native contract has not been deployed. Launched in January 2025, it uses LayerZero's Omnichain Fungible Token standard and runs on a lockbox model where real USDT is locked in an Ethereum vault, with an equal amount of USDT0 minted on the destination chain.
The system has scaled quickly, with over $50 billion in cumulative transfers by late 2025. Daily volumes are in the hundreds of millions, and it has been deployed across chains from Arbitrum to Plasma.
USDT0 is operated by Everdawn Labs under license from Tether, and its mechanics are lock-and-mint, rather than a wrapped token. The system avoids the liquidity-pool bridge model and instead uses burn-and-mint messaging, with transfers executed without an asset crossing between chains.