Tether Targets Cross-Border Payments With t-0 Network Investment

Tether, the issuer of the USDT stablecoin, announced a strategic investment in t-0 Network on February 6, 2026, to expand the use of USDT in institutional cross-border payments. The investment aims to enhance the efficiency and accessibility of global payments through a fiat-to-fiat system anchored by USDT. Tether did not disclose the investment amount but described the move as a step to modernize international payment systems.

The t-0 Network operates as a non-custodial infrastructure layer, enabling licensed banks and fintechs to settle cross-border transactions using USDT as the underlying settlement asset. The platform uses a net settlement model, which reduces capital requirements and foreign exchange risk. This approach allows institutions to send and receive funds in local currencies while settling only the net balance through USDT.

Tether CEO Paolo Ardoino emphasized that the t-0 Network addresses inefficiencies in traditional international payment systems by offering real-time settlement, cost efficiency, and global reach. The partnership reflects Tether's broader goal to promote financial inclusion and transform USDT into a trusted institutional-grade settlement system.

Why Did This Happen?

Tether has experienced strong financial performance in 2025, generating approximately $10 billion in profits from U.S. Treasury holdings. The company has accelerated investments in infrastructure and financial services, including stakes in Gold.com and Anchorage Digital. The investment in t-0 Network aligns with Tether's strategy to expand USDT's use beyond trading and remittances into institutional settlement functions.

The t-0 Network operates as a proprietary platform that connects licensed institutions through a single API, allowing them to settle transactions in real-time. The platform's non-custodial design ensures institutions retain control of their funds while leveraging the t-0 ledger for transaction matching.

Tether's strategic move reflects a growing trend in the stablecoin industry to build scalable and compliant infrastructure for cross-border payments. By investing in t-0 Network, Tether aims to reduce the complexity of international payments and provide a faster, more transparent solution for institutional clients.

What Are Analysts Watching?

Analysts are watching how the t-0 Network performs in real-world transactions and whether it gains adoption among financial institutions. The platform's ability to simplify cross-border payments without overhauling existing banking systems is a key factor in its potential success.

Tether's investment also raises questions about regulatory compliance and the role of stablecoins in institutional finance. The t-0 Network must demonstrate its ability to meet global regulatory standards to gain widespread trust.

Chainalysis has highlighted the need for banks to carefully evaluate their options when engaging with stablecoins. Banks can either issue their own stablecoins, partner with existing issuers, or integrate public stablecoin networks like t-0. Tether's backing of t-0 may influence banks to consider stablecoin integration as a faster, lower-risk option.

The t-0 Network claims to support over 1,200 payment corridors using stablecoin infrastructure. However, limited public information about its operational history remains. Analysts will be looking for more transparency and performance data in the coming months.

Tether's move into institutional payments reflects a broader industry shift toward programmable settlement. As cross-border processes remain slow and expensive, platforms like t-0 aim to provide scalable and efficient alternatives.

The partnership between Tether and t-0 Network reinforces USDT's role as a settlement liquidity asset for global institutions. As the network expands, its impact on traditional correspondent banking models will be closely monitored.