Tether will launch a new stablecoinwhich will seek to improve interoperability between different blockchains. USDT0 is based on technology Omnichain Fungible Token (OFT) of LayerZero, a system that revolutionizes cross-chain transfers.
The initial release of USDT0 It takes place on Ink, the Layer 2 (L2) network powered by the Kraken exchange.
This technology provides secure cross-chain transactions, eliminating the need for bridgesliquidity pools or separate releases on different blockchains.
Traditional bridges, used to transfer cryptocurrencies between blockchains, operate through the locking the original tokens on a chain and creating “wrapped” representations in the destination string.
This process introduces security risksdue to the potential vulnerability of smart contracts involved, in addition to generating commissions and slow transactions.
In practice, the existence of USDT0 In the future, it will involve the dissemination of a standard token 1:1 anchored to USDT, a stablecoin that in turn is anchored 1:1 to the price of the dollar.
It will also give greater presence of USDT on decentralized finance (DeFi) platforms and other protocols spread throughout different ecosystems, according to Paolo Ardoino, CEO of Tether.
The benefits that this new stablecoin brings
According to analysts, the benefits of USDT0 are broad and diverse, and affect both users individual like to companies who operate in the crypto space.
For users, the main advantage is the ability to move funds between different blockchains faster and easier. They will no longer be limited by the network in which their assets are located, but will be able to take advantage of the opportunities offered by different ecosystems.
Businesses also benefit greatly from USDT0. For those operating on multiple blockchains, asset management becomes much simpler and more efficient. Besides, Businesses can access markets that were previously out of reach as they can move funds more quickly and cheaply.
This is especially useful for companies looking to expand into new markets or have complex business operations involving different blockchains.
Source: Ambito

I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.