Stablecoin issuer Tether announced on Thursday the launch of a new product, USDT0, to expand its U.S. dollar stablecoin USDT to other new blockchains, providing a seamless experience for users and developers.
USDT0 is built using the multi-chain homogeneous token (OFT) standard of the full-chain interoperability protocol LayerZero for deployment and asset transfer on new blockchains, and always maintains 1:1 support with USDT on Ethereum.
Tether CEO Paolo Ardoino said in a statement: “USDT0 provides a much-needed solution for the seamless movement of USDT across the ecosystem. By improving interoperability and reducing friction, it enhances the user experience in a way that is consistent with Tether’s overall vision.” According to the statement, USDT0 was first launched on the Ethereum second-layer network Ink of the cryptocurrency exchange Kraken, and will be launched on the Layer 1 blockchain Berachain and the Layer 2 network MegaETH in the future.
Tether Considers Expanding U.S. Operations
According to Bloomberg, Tether is considering expanding its operations in the United States following the victory of crypto-friendly Donald Trump in the U.S. presidential election.
Tether Chief Executive Paolo Ardoino said in an interview with Bloomberg TV on Thursday that the prospect of an improving regulatory environment for cryptocurrency companies, coupled with Tether’s recent $775 million investment in video platform Rumble, gives the company “a good opportunity to start exploring the U.S. environment and how it’s changing.”
“I don’t rule out the possibility of Tether expanding its business in the United States, but we will also proceed with caution.” Ardoino said: “We currently need regulatory clarity and guidance. We need to observe what U.S. regulations will look like before making a decision.” The USDT issued by Tether is the world’s largest stablecoin, with a current market share of 66% and a market value of US$137 billion. Its reserves are mainly composed of cash and cash equivalents to maintain its value One-to-one anchor with the U.S. dollar. Tether’s reserves also include U.S. Treasuries, which are primarily managed by financial services firm Cantor Fitzgerald. Cantor Fitzgerald CEO Howard Lutnick has been nominated by Trump to be commerce secretary.
Ardoino also said in the interview that Tether’s profits in 2024 may be much higher than the previously predicted $10 billion, and the increase in profits is partly due to the appreciation of Bitcoin held in Tether’s portfolio. Additionally, Ardoino said Tether spent billions of dollars last year investing in other companies, including Rumble, German technology company Northern Data AG and South American agricultural giant Adecoagro SA.
Ardoino said Tether expects to publish quarterly certifications of its reserves later this month. Meanwhile, Tether will complete the establishment of its global headquarters in El Salvador in the coming days.
