Tether has picked Layer 2 Ethereum protocol Arbitrum to supply the infrastructure for its new cross-chain initiative, Legacy Mesh.
The information follows Tether’s launch of a brand new token, dubbed USDT0, in mid-January to facilitate smoother cross-chain transfers of USDT exterior of blockchains that already help it. The purpose was to do it while not having to make use of strategies like wrapping tokens or blockchain bridges.
USDT0 is pegged one-to-one with Tether’s flagship stablecoin, USDT. It is presently the world’s largest stablecoin with a market cap of $141 billion based on CoinGecko. It runs on LayerZero’s Omnichain Fungible Token (OFT) normal, which has been utilized by different stablecoins corresponding to PayPal’s USD stablecoin, PYUSD.
The Arbitrum blockchain will act as a “hub chain,” connecting the USDT and USDT0 networks. By it, USDT deployments on Arbitrum, Ethereum, Tron, Ton, Ink, and Berachain will hyperlink again to a unified USDT0 community.
Steven Goldfeder, co-founder and CEO of Offchain Labs, which develops Arbitrum, mentioned, “The Legacy Mesh is a vital milestone for Arbitrum, guaranteeing that customers and builders have entry to deep, liquid markets whatever the blockchain they’re on.”
Tether has been on a roll since 2025 on the subject of rising interoperability with different blockchains. Tether not too long ago included interoperability with Bitcoin by way of the Lightning Community on the finish of January, following asserting the transfer at a Bitcoin convention in El Salvador.
The stablecoin issuer has additionally been reporting file numbers on the subject of its funds. Tether reported yearly internet earnings exceeding $13 billion in This fall, in addition to a file quantity of publicity to U.S. Treasuries.
However the monetary success is coming amid loads of scrutiny from regulators.
President Donald Trump’s decide for commerce secretary, Howard Lutnick, not too long ago agreed to help the introduction of presidency audits for stablecoin reserves to forestall stablecoins like Tether from dropping their greenback peg.
We’ve additionally seen Arbitrum present the idea for quite a few different infrastructure initiatives in current months.
Bitcoin rollup layer BitcoinOS not too long ago introduced an integration with Arbitrum One, to bridge Bitcoins customers and DeFi functions on Ethereum.
Edited by Stacy Elliott.
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