USD₮0 Launches on Flare Network, Bringing USDT Liquidity to the XRP Ecosystem

Flare Network has introduced USD₮0, an omnichain deployment of USDT, aiming to bridge stablecoin liquidity across major blockchain ecosystems.

Flare Network has announced the deployment of USD₮0, an omnichain iteration of USDT, on its network. This integration aims to bring the liquidity of the world’s most-used stablecoin to Flare, impacting cross-chain activity and supporting the emerging XRP DeFi ecosystem on the network.

Announced via X (formerly Twitter) on Monday, the deployment of USD₮0 on Flare follows its integration with Arbitrum, Optimism, and Sei in recent months.

Announcing the launch of $USDT0 on @FlareNetworks!

Bringing the liquidity of the world's largest stablecoin, primed for XRP DeFi on Flare.

Your USDT, now on Flare. pic.twitter.com/NxTiASXvYI

— USDT0 (@USDT0_to) April 28, 2025

Powered by LayerZero’s Omnichain Fungible Token (OFT) technology, USD₮0 facilitates the transfer of tokens across major blockchains, including Ethereum, Arbitrum, Optimism, Sei, and now Flare. Since its introduction in January, over $2 billion worth of USD₮0 has been bridged on-chain.

The integration of USD₮0 on Flare will enable users of the network to conduct transactions in the stablecoin at zero gas fees on the network. This is expected to make cross-border remittances and crypto-based payments more affordable and accessible, removing a key barrier to adoption.

Those holding USD₮0 on Flare will also be able to participate in the USD₮0 Boost program, which offers up to 30% annual percentage yield (APY) paid in rFLR tokens from institutional-grade liquidity pools.

The initiative to bring USDT to Flare also marks an effort to connect the second-largest non-smart contract asset with the network in a bid to support the development of its emerging XRP DeFi ecosystem. The network is aiming to provide a unified liquidity solution to support the emerging use cases for FXRP and upcoming liquid-staked XRP assets, ultimately supporting greater utility and market participation.

USD₮0 is deployed on LayerZero using its OFT standard, which enables the movement of stablecoins in a burn-and-mint structure between chains, rather than a bridging paradigm. This structure supports greater capital efficiency for the natively available on each supported chain within seconds to minutes.

Each USD₮0 token is fully backed 1:1 by USDT held in non-custodial contracts on Ethereum, supporting transparency and minimising counterparty risks. Developers on Flare will be able to rapidly integrate USD₮0 as they would a standard ERC-20 token, with the added benefit of omnichain functionality from launch, streamlining application deployment and interoperability without the complexities of managing multiple bridged versions.

The launch of USD₮0 aligns with Flare’s broader objective of building an infrastructure layer for interoperable DeFi systems. With Flare’s enshrined oracles and Trusted Execution Environments (TEEs), applications will be able to access real-time external data and perform cross-chain transactions securely.

Integrating deep stablecoin liquidity addresses one of the last major requirements for creating a full-featured DeFi ecosystem on Flare.

Those holding bridged USDT can migrate to USD₮0 through the Flare Portal’s dedicated migration tool. Following the integration, platforms such as SparkDEX and Kinetic will provide gasless transfers and high-yield staking opportunities for USD₮0 on Flare, promoting further engagement within the network.

By introducing native USDT liquidity without any intermediaries, Flare is positioning itself as a platform for decentralized finance innovation across high-value assets.