Tether Enhances Arbitrum USDT with the Introduction of USDT0: A Cross-Chain Stablecoin Backed by Ethereum Reserves
Tether has introduced a significant upgrade to its USDT stablecoin on the Arbitrum network, transitioning to the new USDT0. This upgrade brings a cross-chain compatible stablecoin, fully backed 1:1 by Ethereum-based USDT reserves, designed to enhance interoperability across multiple blockchain platforms.
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Tether’s USDT on Arbitrum Now Upgraded to USDT0
The upgrade to USDT0 on Arbitrum is automatic, meaning all existing Arbitrum USDT holdings will seamlessly convert to USDT0 without any required action from users. USDT0 will become the default stablecoin on Arbitrum, maintaining the same contract address. During the migration phase, which will begin on February 4 at 16:00 CET, transfers between Arbitrum and Ethereum will take up to seven days. Notably, third-party bridges, such as Stargate, will continue to operate unaffected.
Key Enhancements with USDT0 on Arbitrum
Tether initially unveiled USDT0 in January 2025, with a full migration plan set in motion. Starting from February 5, USDT0 transfers via Arbitrum’s official bridge will occur in just minutes, with fees that are lower than a cent. After the migration, the legacy Arbitrum USDT bridge will be discontinued. Additionally, USDT0 will bring enhanced cross-chain compatibility, with integrations planned for networks like Ink and Berachain, alongside the upcoming Megaeth integration.
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Security and Audits Ensure USDT0’s Reliability
The USDT0 upgrade has undergone thorough security audits by renowned firms such as OpenZeppelin, Guardian Audits, and ChainSecurity, ensuring its robustness and safety. Furthermore, a public risk audit report will be released by Chaos Labs after the upgrade’s completion. Tether worked closely with Offchain Labs and LayerZero Labs to streamline contract ownership transfers and infrastructure updates during this transition.
Wide Adoption Across DeFi Ecosystem and Beyond
DeFi platforms on Arbitrum, including major protocols like Aave and GMX, will automatically support the new USDT0. Tether’s transparency page reports a total of $139.46 billion in USDT’s circulating supply as of January 29, 2025, indicating the widespread usage of its stablecoin.
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This upgrade underscores Tether’s strategic push to bolster its Layer 2 presence, capitalizing on Arbitrum’s low transaction fees and fast processing speeds. With over 1.3 billion USDT already deployed on Arbitrum, further growth is expected as the ecosystem expands.
USDT0 Now Live on Arbitrum and Ink, With More Chains Coming Soon
USDT0 is now live on the Arbitrum and Ink networks, with additional chains set to integrate later in the year. Users can transfer their USDT to Arbitrum via usdt0.to following the upgrade, paving the way for greater interoperability across the blockchain space.
This update marks a key milestone in Tether’s vision to create a more efficient, interoperable, and secure stablecoin ecosystem for decentralized finance and beyond.
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