USDT0 launched on Stellar on September 2, 2026, connecting the payments-focused blockchain with Tether's $180+ billion USDT liquidity available across networks supported by the cross-chain stablecoin infrastructure. According to reports from Stellar, the integration uses LayerZero's Omnichain Fungible Token (OFT) standard to allow USDT0 to move between Stellar and connected blockchains while maintaining what its developers describe as a unified supply backed one-to-one by USDT. The asset is different from a new direct issuance of USDT by Tether on Stellar, representing an interoperability product that extends access to USDT liquidity across supported networks. As reported by Stellar Development Foundation, USDT0 is designed to address the operational challenge of moving digital dollars between blockchains, allowing businesses to maintain a single, consistent USDT asset that can move across supported networks without managing multiple versions of the same asset across different chains.
USDT0 is immediately available through multiple platforms at launch: Kraken, Bitget Wallet, Fireblocks, Freighter, Kredete, Lobstr, Meru, Ramp Network, SushiSwap, and BiLira Kripto, with Exodus expected to follow according to the latest deployment announcement. The official USDT0 website lists more than 25 supported networks, including Ethereum, Solana, Hedera, and other major blockchains. The integration runs on LayerZero's OFT standard, which provides the framework that makes cross-chain operations possible by standardizing how tokens are burned, minted, and verified across chains. This standardization removes the need for each new deployment to reinvent security and interoperability protocols, allowing Stellar to inherit the entire existing USDT0 liquidity network on day one rather than building from zero. The Stellar Development Foundation stated that actual adoption will depend on the amount bridged to Stellar and the number of businesses and users integrating it. For businesses operating on Stellar, the integration enables direct access to Tether's USDT liquidity for cross-border payments and settlement, continuous global money movement using Stellar's payment infrastructure, treasury operations built around one consistent USDT asset, and financial applications that do not need to manage multiple versions of USDT across different chains.
USDT0 operates through a burn-and-mint mechanism rather than traditional bridging, where tokens are burned at the source and freshly minted at the destination when moving between chains. The security layer backing this process is a 3/3 Decentralized Verification Network (DVN), where three independent verifiers - LayerZero, USDT0, and Canary - must all sign off on every cross-chain transfer before it executes. The entire operation is run by Everdawn Labs, which holds a license from Tether to operate USDT0. Every token in circulation is backed 1:1 by real USDT locked on the Ethereum network. This infrastructure gives participants access to the broader liquidity pool shared by connected ecosystems while maintaining security standards across all supported chains. However, users remain exposed to contracts, messaging infrastructure and operational controls that manage transfers, and access to a larger market does not guarantee deep liquidity on every decentralized exchange or trading pair.
Stellar reported $5.5 billion quarterly stablecoin payment volume, representing a 72% increase year over year in 2026, according to Stellar Development Foundation data. The network also reported that tokenized real-world assets on the network surpassed $2 billion shortly after the quarter ended. On Stellar, USDT0 transactions feature sub-cent fees and settle in just five seconds, making it an attractive option for high-frequency payment flows and DeFi applications. Stellar was designed to support asset issuance and international payments, with its network charging transaction fees in XLM and normally confirming transactions within several seconds. The foundation indicated that USDT0 could help payment companies serve users in Latin America, Africa and Asia-Pacific, where USDT is widely used for dollar-denominated transfers, savings and settlement. Stellar has provided payment infrastructure since 2014 for applications including remittances, financial inclusion initiatives, aid distribution, and international payments, positioning itself around low-cost, high-speed settlement for institutional-scale money movement.
USDT0's inclusion on Stellar offers significant opportunities for DeFi protocols and institutional participants, with over $180 billion in market cap tied to USDT now accessible through Stellar-based applications. SushiSwap, a leading DeFi platform, has already integrated USDT0 on Stellar, with more partnerships expected to follow. For exchanges, fintechs, and enterprises already using Stellar, the rollout of USDT0 simplifies treasury operations and broadens the range of services they can offer. Exchanges can provide fast USDT0 deposits and withdrawals, while payment service providers can streamline settlements with counterparties who prefer USDT. Key platforms supporting USDT0 on Stellar include Kraken, Bitget Wallet, Fireblocks, Freighter, Kredete, Lobstr, Meru, Ramp Network, SushiSwap, and BiLira Kripto, with Exodus expected to follow. Unlike traditional USDT, which is issued natively on specific blockchains like Ethereum or Tron, USDT0 uses a lock-and-mint mechanism via LayerZero's messaging protocol, allowing users to move liquidity seamlessly between supported chains while maintaining a single, unified supply of USDT. The risk to monitor is concentration, as with Everdawn Labs as the sole licensed operator and all backing collateral sitting on Ethereum, there's a single-point-of-failure question that serious users will want to evaluate, despite the 3/3 DVN model mitigating some bridge risk.
