The Ink network—launched by crypto exchange Kraken—has become the first Ethereum Layer-2 to host USDT0, a cross-chain stablecoin from Tether. The announcement was made in a blog post published by the exchange.

Ink is built using Optimism technologies and is compatible with all networks on the OP Stack.

Other Kraken competitors have also released their own L2 solutions for DeFi applications on OP, including Base (Coinbase) and Unichain (Uniswap).

Tether plans to utilize USDT0 as a “unified liquidity layer” across L2s to streamline the token’s transfer throughout the crypto ecosystem.

The stablecoin employs Omnichain Fungible Token from LayerZero, enabling issuance and burning across various chains.

USDT0 facilitates seamless and secure cross-chain transfers without relying on standalone deployments, liquidity pools, or intermediary solutions—enhancing capital efficiency and simplifying asset movement between networks.

Andrew Koller, Head of Ink, told The Block that USDT0 will bring liquidity to dApps like Velodrome and improve the user experience on Ink and other L2 solutions.

Context

In November, Kraken and Tether financed the launch of EU-regulated stablecoins.
That same month, Tether announced it would discontinue support for EURT—its euro-based stablecoin.
As of November 2024, MiCA-compliant stablecoins such as EURC, EURCV (Societe Generale), and EURI (Banking Circle) held a record 91% market share in the euro stablecoin space.