06 March What is USDT0?

USDT0 is a bridged version of Tether’s USDT Stablecoin, designed to extend USDT availability to blockchains that are not natively issued. It works with the “Lock and Mint” mechanism. This means that the USDT is locked to Ethereum and an equivalent amount of USDT0 is cast in the destination chain. The system is equipped with Layerzero’s Omnichain Fungible Token (OFT) standard, which makes it easy to secure and seamless cross-chain transfers. Unlike standard USDT, USDT0 is not directly issued or redeemable by Tether, but is managed by EverDawn Labs, making it a clear asset that users need to exchange USDT0 and USDT conversion tools.

USDT0 aims to address the interoperability challenges of the blockchain ecosystem by making it easy to transfer stubcoins across different networks without relying on fragmented liquidity pools or traditional bridges. It has been introduced in blockchains such as Ink, Bellachine and Megaeth, and plans to expand to additional networks. The OFT standard ensures that USDT0 maintains 1:1 backing with USDT on Ethereum, and that the relocation is validated by a distributed security model that includes oracles and relays. This approach reduces the complexity of cross-chain transactions while enhancing liquidity management.

One important distinction between USDT0 is that it cannot be used for direct transactions. Instead, it acts as a transport mechanism to promote USDT movement through different ecosystems. Users can deposit USDT0 with a supported exchange such as Bitfinex, or exchange it for a standard USDT using withdrawals and currency conversion tools. This design allows for seamless use of USDT on networks where native publishing is not feasible, making it more flexible for users without compromising the underlying backing of Stablecoin.

The introduction of USDT0 will affect both blockchain users and platforms. It provides users with a more efficient and safer way to transfer stable values ​​across chains and reduce the risks associated with third-party bridges. For exchange and distributed finance (DEFI) platforms, simplify integration and liquidity management by integrating Stablecoin supply across multiple networks. While USDT0 reflects its focus on cross-chain interoperability, the distinction between standard USDT, particularly third-party issuer involvement, requires users to keep an eye on the underlying mechanisms and associated risks when interacting with assets.

What is a USDT0 token?

Unlike standard USDTs, which are issued and redeemed directly on supported networks such as Ethereum and Tron, USDT0 works through a “lock and mint” mechanism. When a user transfers the USDT to a non-native blockchain, an equivalent amount of USDT0 is cast in the non-native destination chain, and the original USDT is firmly locked to Ethereum. This ensures that each USDT0 token maintains a strict 1:1 support with USDT on Ethereum, and maintains a stable value peg in US dollars.

USDT0 is built using the OFT standard developed by Layerzero. This allows tokens to move seamlessly across multiple blockchains. This standard often includes liquidity pools, eliminating the need for traditional bridging solutions that can put users at risks such as bridge exploits and price slippage. Instead, USDT0 allows users to efficiently and securely transfer stubcoins between supported blockchains, and transactions are validated via a layer-zero decentralized messaging and verification system. The initial launch of USDT0 began with networks such as ink and Bellachin, with further expansion to additional blockchains expected.

The introduction of USDT0 addresses the growing demand for interoperability within the blockchain ecosystem, allowing USDT to operate more efficiently on different networks. It provides a practical solution for users looking to move stubcoins between ecosystems without managing fragmented bridging systems or liquidity pools. This development reflects the continuous evolution of Stablecoins as the blockchain industry continues to prioritize cross-chain capabilities and interoperability.

Let’s get started with USDT0:

• Create a bitfinex account here.
• Check your account with Basic Plus.
• In the Currency Conversion drop-down menu, select from.
• For the “to” drop-down menu, select USDT0 in either Arbitrum One or Ink.
• Please note that currently you cannot exchange USDT0 between the Arbitrum One and Ink variants.

USDT0 Tokenomics

USDT0’s Tokenomics is centered around a “Lock and Mint” model designed so that each USDT0 token is fully supported by Ethereum’s equivalent amount of USDT. This system maintains a strict 1:1 peg between USDT0 and USDT. When a user moves funds to USDT0, the corresponding USDT is locked to Ethereum and an equivalent amount of USDT0 is minted on the destination blockchain. This ensures that the total supply of USDT0 across all chains will always prevent comparable reserves of USDT and inflation or non-package creation. With this model, USDT0 acts as a stable representation of USDT across multiple networks, supporting interoperability without compromising the fundamental stability of the tethered ecosystem.

The Minting process begins when the user initiates a cross-chain transfer by locking the USDT to Ethereum. This is done through a smart contract that securely holds a locked USDT. Once a transaction is validated, the Layerzero messaging protocol sends a message to the destination chain. Upon receiving this message, the USDT0 contract for the target blockchain will create an equal amount of USDT0 tokens, reflecting Ethereum’s locked funds. This process is designed to be safe and reliable, and utilizes Layerzero’s OFT standard and dual verification network (DVN) to ensure that the correct amount of USDT is locked before USDT0 is issued on a new chain. This ensures that the token is not minted without proper collateral.

Redemption follows the reverse process. When a user attempts to return USDT0 to Ethereum or convert it to USDT, the USDT0 token in the source chain is burned. Once this burn is confirmed, a Layerzero message will be sent to the contract and will tell the user to release an equivalent amount of USDT, as it holds the Ethereum locked USDT. This combustion mechanism ensures that the USDT0 token is created only when backed up by the USDT and is destroyed upon redemption, ensuring that it maintains supply balance throughout the chain. This system prevents excessive issuance of USDT0, supports 1:1 backing, and enhances stability and reliability of tokens moving into various on-chain ecosystems.

USDT0 Community Channel

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April 23rd Bitfinex will begin supporting USDT0 on optimism

Road Town, Tortola, British Virgin Islands – 23rd April 2025 – Bitfinex (https://www.bitfinex.com), a premier digital asset trading platform, has announced that USDT0 deposits and withdrawals on the Optimism Network will be available directly on Bitfinex.

USDT0, a Crosschain Stablecoin designed by Everdawn and Layer Zero, is an Omnichain-enabled bridge version of Tether’s USDT. This integration will make optimism the latest blockchain supported by Bitfinex, allowing its customers to deposit USDT0 into this network and withdraw it, following a similar integration between Ink and Arbitrum.

Optimism is Ethereum’s Layer 2 Scaling Solution that leverages optimistic roll-up technology to enhance transaction throughput and reduce fees. Recent SuperChain data shows that OP SuperChain currently handles around 52% of all transactions in Ethereum’s Layer 2 (L2) compared to 36.6% in September, but its total value over the network (TVL) is over $4.2 billion.

Developed by Everdawn and Layer Zero, USDT0 is managed by the USDT0 Consortium, an ecosystem initiative launched by the consortium using Layerzero’s OFT standard, and is designed to expand the USDT utility across the blockchain. Bitfinex customers will convert USDT balance directly to USDT0 on the platform and pull it out onto a supported blockchain.

Designed for seamless interoperability on the Optimism Network, Bitfinex’s USDT0 support on the Optimism Network is the latest addition to the Stablecoin rollout. This integration demonstrates Bitfinex’s response to current market demand by increasing Stablecoin’s liquidity and trading efficiency on high-performance L2 platforms.

“USDT0 is one of the most innovative stubcoins on the market and is consistent with its mission to bring digital assets closer to everyday use,” he said. Anoush Bhasin, Bitfinex listing manager. “USDT0’s support for optimism opens up a direct channel to help customers enjoy fast, cost-effective transactions in a scalable ecosystem.”

For more information, customers can visit https://www.bitfinex.com/.

Please note that USDT0 is not directly issued or redemptionable by tether.

*All users of www.bitfinex.com are subject to Bitfinex Terms of Service (“TOS”). Please note that among other prohibited persons (as defined in TOS), US people (as defined in TOS) are strictly prohibited from directly or indirectly retaining, owning or operating an account on www.bitfinex.com (as defined in TOS).

About Bitfinex

Founded in 2012, Bitfinex is a digital token trading platform that provides cutting-edge services for traders and global liquidity providers. In addition to a range of advanced trading capabilities and charting tools, Bitfinex offers access to peer-to-peer financing, the OTC market and margin trading for a wide selection of digital tokens. Bitfinex’s strategy focuses on providing unparalleled support, tools and innovation to experienced traders and liquidity providers around the world. For more information, please visit www.bitfinex.com.

Bitfinex media contacts

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Please see the official logo and branding

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06 March Bitfinex now supports USDT0 with Ink and Arbitrum One

Road Town, Tortola, British Virgin Islands – March 6, 2025 – Bitfinex (https://www.bitfinex.com), a leading digital asset trading platform, today announced USDT0 support for deposits and withdrawals. USDT0 is an ecosystem initiative launched by the consortium using Layerzero’s OFT standard, and is an Omnichain-enabled bridge version of Tether’s USDT, managed by the USDT0 consortium designed to expand USDT utility across the blockchain. Bitfinex customers will convert USDT balance directly to USDT0 on the platform and pull it out onto a supported blockchain.

This integration starts with Layer 2 Network Ink and Arbitrum One, allowing fast and cost-effective transactions, allowing customers to seamlessly deposit USDT0 into a Bitfinex wallet or withdraw it to an external private wallet. By supporting USDT0, Bitfinex allows customers to move value across the supported chain, simplifying the bridging process. Bitfinex will now be able to convert USDT0 with a 1:1 ratio to USDT, allowing customers to easily convert between the two. Ink and Arbitrum One are the first networks in this rollout.

“We look forward to supporting USDT0 on our platform, as it aligns with our mission to make it easy for our customers to access digital assets across our diverse ecosystem,” he said. Paolo Ardoino, CTO of Bitfinex. “With USDT0, customers will have the flexibility to leverage USDT stability on a variety of blockchains that do not currently offer native USDT. This is a key step towards an improved interoperability, increased liquidity and a more comprehensive digital asset landscape.”

USDT0 deposits and withdrawals were opened at UTC on March 6, 2025 at 11am.

To access USDT0 via bitfinex, go to https://www.bitfinex.com/

Please note that USDT0 is not directly issued or redemptionable by tether.

*All users of www.bitfinex.com are subject to Bitfinex Terms of Service (“TOS”). Please note that among other prohibited persons (as defined in TOS), US people (as defined in TOS) are strictly prohibited from directly or indirectly retaining, owning or operating their www.bitfinex.com account (as defined in TOS).

What is included in this press release is not an offer to buy and sell assets, including cryptocurrency. It is also not a solicitation, recommendation or approval of a trading course. The buying and selling of cryptocurrency on Bitfinex’s platform occurs based on TOS.

The content of this press release is of a general nature and does not address your personal standards or circumstances. The information provided in this press release should not be interpreted as financial, legal or other advice. You must conduct your own research and do not rely on the content mentioned in this press release. There are risks associated with the buying and selling of assets, including cryptocurrencies. For more information, see Bitfinex’s Risk Disclosure Statement at https://www.bitfinex.com/legal/exchange/risk.

About Bitfinex

Founded in 2012, Bitfinex is a digital token trading platform that provides cutting-edge services for traders and global liquidity providers. Bitfinex offers access to peer-to-peer financing, the OTC market and a wide range of digital token margin trading. Bitfinex’s strategy focuses on supporting experienced traders and liquidity providers around the world. For more information, please visit www.bitfinex.com.

Bitfinex media contacts

(Email protection)

For official logos and branding, please visit https://www.bitfinex.com/press/#press-downloads

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