Tether Selects Arbitrum to Be the Infrastructure Provider for Its New Crosschain Stablecoin USDt0

Steven Goldfeder, the CEO of Arbitrum developer Offchain Labs, said the Legacy Mesh technology provides users and developers with “deep, liquid markets regardless of the blockchain” they’re using.

Stablecoin issuer Tether has announced Arbitrum as the infrastructure provider for USDt0, the company’s new crosschain US dollar stablecoin.

According to a Feb. 11 announcement, Arbitrum One will serve as the main hub connecting USDt0 to other blockchain networks.

Steven Goldfeder, the CEO of Arbitrum developer Offchain Labs, said the Legacy Mesh technology provides users and developers with “deep, liquid markets regardless of the blockchain” they’re using.

“This new solution will drive broader USDt adoption and increase its scalability across networks,” said Goldfeder.

USDt is already the world’s most widely used stablecoin, with a total market capitalization of more than $141 billion, according to CoinMarketCap. Circle’s USD Coin (USDC) ranks second with a market cap of about $44 billion.

Tether accounts for more than 61% of the $230 billion stablecoin market. Source: CoinMarketCap

Tether launched USDt0 in collaboration with LayerZero on Jan. 16. The crosschain stablecoin’s first deployment was on Ink, crypto exchange Kraken’s scaling solution.

A Tether representative did not immediately respond to Cointelegraph’s request for comment.

Related: Tether’s stablecoin to be integrated into Bitcoin Lightning)

Tether’s soaring profits

Despite regulatory uncertainty over USDt’s status in the European Union and growing competition from other stablecoin issuers, Tether remains highly profitable, both in absolute terms and on a per-employee basis.

As Cointelegraph recently reported, the company posted a record-breaking profit of $13 billion in 2024 thanks to its massive stockpile of US government bonds collecting interest.

Tether’s 2024 financials. Source: Tether

By the end of 2024, Tether’s US Treasury portfolio was valued at approximately $113 billion. That’s larger than all but 17 of the world’s governments, the company said in July.

The company’s success is largely due to the widespread adoption of stablecoins in the cryptocurrency market and their potential to revolutionize traditional remittance services.

As Chainalysis reported in December, “cross-border payments and remittances are among the most transformative use cases for stablecoins,” offering lower-cost alternatives to established remittance services.

Chainalysis illustrated how sending a $200 remittance from Sub-Saharan Africa using a stablecoin is about 60% cheaper than traditional fiat-based methods.

Magazine: Ethereum L2s will be interoperable ‘within months’ — Complete guide

Explore further articles like this

Subscribe to our Crypto Biz newsletter

A weekly snapshot of key business trends in blockchain and crypto, ranging from startup buzz to regulatory shifts. Gain valuable insights to navigate the market and spot financial opportunities. Delivered every Thursday

By submitting this form, you agree to Chainlink’s Terms of Service and Privacy Policy