Tether Boosts USDT0 with Arbitrum's Cross-Chain Magic

Tether, the world's largest stablecoin issuer, has made strategic moves to enhance its infrastructure and user accessibility amid evolving regulatory landscapes. The company recently announced its investment in Zengo Wallet, a self-custodial wallet utilizing multiparty computation (MPC) technology, to strengthen the security of decentralized asset storage. At the same time, Tether has selected Arbitrum as the infrastructure provider for its new crosschain stablecoin, USDT0, aiming to improve liquidity and interoperability across major blockchain networks.

Tether Selects Arbitrum as Key Infrastructure Provider for USDT0 Crosschain Stablecoin

Tether, the issuer of the world’s largest stablecoin USDt, has chosen Arbitrum to serve as the infrastructure provider for its newly launched crosschain stablecoin, USDT0. This strategic partnership aims to enhance liquidity, scalability, and interoperability across multiple blockchain networks, further strengthening Tether’s dominance in the stablecoin market.

According to a Feb. 11 announcement, Arbitrum One will act as the central hub connecting USDT0 to various blockchain ecosystems, including Ethereum, Tron, Telegram Open Network (TON), and Celo. Tether will leverage Arbitrum’s Legacy Mesh technology, an innovative solution designed to facilitate seamless stablecoin transfers between these networks, reducing fragmentation and enhancing efficiency.

Steven Goldfeder, CEO of Offchain Labs—the developer behind Arbitrum—highlighted the importance of this integration, stating that the Legacy Mesh technology enables “deep, liquid markets regardless of the blockchain” used. The implementation is expected to accelerate USDt adoption and expand the stablecoin’s accessibility across decentralized finance (DeFi) platforms and traditional financial applications.

Tether’s USDt remains the most widely used stablecoin, with a total market capitalization exceeding $141 billion, according to CoinMarketCap. Its closest competitor, Circle’s USD Coin (USDC), holds a significantly smaller market share at $59 billion.

Tether’s dominance extends beyond individual stablecoins, accounting for over 61% of the global stablecoin market, which is currently valued at approximately $230 billion. With USDT0 designed as a crosschain solution, the company aims to further solidify its leadership position by improving liquidity and increasing the efficiency of cross-border transactions.

USDT0 was first deployed on