10 months transfer 50 billion! USDT0 stablecoin sweeps across 15 chains, challenging the status of USDT

The stablecoin USDT0, issued by Everdawn Labs and pegged to Tether, has accumulated a transfer amount exceeding 50 billion USD. This milestone was achieved just 10 months after the launch of the USDT0 network in January 2025, solidifying USDT0's position as the fastest-growing cross-chain USDT liquidity network.

What is USDT0? Tether's Full Chain Revolution

USDT0 is the fully on-chain version of the Tether stablecoin USDT, enabling the world's largest stablecoin asset to expand to blockchains that have not natively issued USDT. These tokens are minted on their target chain using LayerZero's Omnichain fungible token standard and maintain a 1:1 peg with USDT. This technical architecture addresses the core pain points of traditional cross-chain stablecoins.

Traditionally, Tether needed to issue USDT separately on each public chain, requiring collaboration with the development teams of those chains for each issuance, deploying smart contracts, and establishing reserve monitoring mechanisms. This process is time-consuming and costly, resulting in Tether being the largest stablecoin by market cap (approximately $184 billion) but only natively issued on a few mainstream public chains. Many emerging public chains, despite their advanced technology, find it challenging to attract users and funds due to the lack of USDT support.

USDT0 has completely changed the game through LayerZero's Omnichain technology. LayerZero is a cross-chain interoperability protocol that allows tokens to be seamlessly transferred between different blockchains while maintaining their native characteristics. Users can bridge USDT on Ethereum to Arbitrum, Solana, or any supported chain via USDT0, with the entire process completed in a matter of seconds and minimal fees.

Tether CEO Paolo Ardoino stated: “USDT0 represents the evolution of the user experience necessary for the digital asset and payment industry to scale and truly integrate into the world structure. The USDT0 technology transforms stablecoins from single-chain assets into a true monetary network infrastructure.” This statement shows Tether's official high recognition of USDT0, viewing it as the future form of stablecoin infrastructure.

Three Major Technological Innovations of USDT0

Cross-Chain Interoperability: A single token can seamlessly flow across 15 chains without the need for multiple exchanges.

1:1 Pegging: Strictly linked to Tether's official USDT, with the same credit rating.

Low-cost and High-speed: Achieve second-level cross-chain based on LayerZero, with transaction fees far lower than traditional bridging.

Achieved an amazing rise of 50 billion USD in 10 months

(Source: ChainWire)

The USDT0 network will be launched in January 2025, achieving a cumulative transfer amount of over 50 billion USD in just 10 months. This growth rate is extremely rare in the history of stablecoins, indicating a strong market demand for full-chain stablecoins. Even more notably, over 10 billion USD (or one-fifth of the total) was transferred last month, showing that the rise is accelerating rather than slowing down.

What does a transfer amount of 50 billion USD mean? From a scale perspective, this is equivalent to the annual GDP of some small to medium-sized countries and exceeds the processing volume of many traditional payment networks. This figure not only proves the technical reliability of USDT0 but also reflects the real demand for cross-chain Liquidity in the market. In the context of the rapid development of applications such as DeFi, NFT, and GameFi, users need to frequently transfer funds between different blockchains, and USDT0 provides the most convenient solution for this demand.

Since its launch, USDT0 has supported over 415,000 users across its 15 operating networks. Although this user count is still relatively small compared to the total number of users in the cryptocurrency market, considering that USDT0 was launched only 10 months ago, this growth rate is already quite remarkable. In terms of user composition, early adopters are primarily DeFi traders, cross-chain arbitrageurs, and institutional-level payment users, who are extremely sensitive to efficiency and costs.

The monthly transfer amount exceeding 10 billion USD is a more significant signal. This means that the usage frequency of USDT0 is rapidly increasing, moving from early small-scale trials into large-scale commercial applications. This exponential rise often occurs at the point when network effects begin to take effect: the more users utilize USDT0, the deeper its liquidity pool becomes, reducing transaction costs and thereby attracting more users to join.

cross-chain ecological landscape across 15 chains

USDT0 currently supports 15 networks covering mainstream and emerging blockchain ecosystems. The Ethereum mainnet and Layer-2 solutions like Arbitrum, Ink, and Sei represent the EVM ecosystem, which is currently the most concentrated area for DeFi applications. The scaling layers supported by Bitcoin, Corn and Rootstock, indicate that USDT0 is entering the Bitcoin ecosystem, which is significant for the development of Bitcoin DeFi.

The addition of Conflux and Plasma, which focus on payments, shows that USDT0 not only serves DeFi transactions but is also expanding into payment and remittance scenarios. Conflux has a strong influence in Asia, especially in the Chinese market, and its integration of USDT0 could bring new opportunities for cross-border payments. Plasma is a scalability solution specifically designed for high-frequency small payments, suitable for retail payment scenarios.

Support for HyperLid and other alternative networks shows that the ecological expansion strategy of USDT0 is “broad coverage” rather than “selective deployment.” The advantage of this strategy lies in maximizing network effects, allowing users to use USDT0 on any chain. The disadvantage, however, is the need to maintain liquidity pools and technical infrastructure across multiple chains, which incurs higher costs.

From an ecological competition perspective, the 15 chains of USDT0 have already surpassed most stablecoins. Although Circle's USDC has the second largest market capitalization (approximately 75 billion USD), the number of native issuance chains is less than that of USDT0. This advantage in coverage will become increasingly prominent in the multi-chain era, as users are becoming less confined to a single blockchain and will choose different chains based on application scenarios.

15 Blockchains Supported by USDT0

EVM Ecosystem: Ethereum mainnet, Arbitrum, Ink, Sei and other Layer-2

Bitcoin Ecosystem: Bitcoin scaling layers such as Corn, Rootstock

Payment Dedicated Chain: Conflux, Plasma

Other Emerging Chains: Alternative networks such as HyperLid

LayerZero Technical Architecture and 1:1 Binding Mechanism

USDT0 adopts the Omnichain fungible token standard of LayerZero, which is its technical core. LayerZero is not a traditional cross-chain bridge, but a lightweight messaging protocol that allows smart contracts on different blockchains to communicate directly. When users transfer USDT0 from Ethereum to Arbitrum, LayerZero will burn the tokens on Ethereum while minting an equivalent amount of tokens on Arbitrum, ensuring that the total supply remains constant.

Maintaining a 1:1 peg with USDT is the foundation of USDT0's credibility. This peg is automatically executed through smart contracts, allowing users to exchange USDT0 for native USDT at any time, and vice versa. This two-way exchange mechanism ensures that the price of USDT0 is always anchored at 1 USD, without the price deviation seen in some cross-chain tokens.

Tether's official endorsement of USDT0 further strengthens its credibility. Paolo Ardoino's statement implies that USDT0 is not an unauthorized “knockoff,” but a legitimate product within the Tether ecosystem. According to Kevin M., a co-founder of USDT0, the project was initially a “startup initiative within the Tether ecosystem,” and it was originally issued on the INK Layer-2 incubated by Kraken. This incubation background shows that USDT0 has received support from mainstream institutions since its inception.

Competition Landscape of the Full-Chain Stablecoin Track

The success of USDT0 has sparked competition in the cross-chain stablecoin arena. Last week, Paxos and LayerZero launched USDG0, a fully on-chain version of the global dollar backed by a consortium of companies including Anchorage Digital, Bullish, and Worldpay. The launch of USDG0 demonstrates that mainstream institutions also see the significant market opportunity for cross-chain stablecoins.

Everdawn Labs also manages the full-chain version of Tether Gold, XAUT0. XAUT0 tokenizes gold and enables cross-chain liquidity, providing users with another value storage option aside from stablecoins. This product matrix shows that Everdawn Labs' ambitions are not limited to stablecoins, but rather aim to establish a complete cross-chain asset infrastructure.

The core competition of the full-chain stablecoin lies in the ecological coverage, Liquidity depth, and user experience. USDT0 currently leads in coverage (15 chains) and transfer scale (50 billion USD). However, the institutional consortium behind USDG0 is even more powerful, and the user base of multiple CEX platforms may bring rapid rise to USDG0.

This competition will ultimately benefit users. The coexistence of multiple full-chain stablecoins will enhance liquidity, reduce cross-chain transfer costs, and promote the further maturity of technical standards. For Tether, the success of USDT0 means that its market dominance extends from the single-chain era to the multi-chain era, consolidating its position as the largest stablecoin in the world.