Tether’s USDT0 launches on Stellar with cross-chain liquidity

USDT0 launched on Stellar on Sept. 2, connecting the payments-focused blockchain with Tether-backed liquidity available across networks supported by the cross-chain stablecoin infrastructure. Summary USDT0 launched on Stellar using LayerZero’s interoperability standard for cross-chain stablecoin transfers and applications worldwide. Stellar users can access USDT-linked liquidity without relying on separately fragmented token pools across networks. Kraken, Bitget, Fireblocks, Freighter, Lobstr and SushiSwap supported USDT0 when Stellar announced the launch publicly. Stellar reported $5.5 billion quarterly stablecoin payment volume, up 72% year over year in 2026. USDT0 extends Tether-backed liquidity through separate interoperability infrastructure rather than isolated cross-chain token pools globally. The integration uses LayerZero’s Omnichain Fungible Token standard. It allows USDT0 to move between Stellar and connected blockchains while maintaining what its developers describe as a unified supply backed one-to-one by USDT. USDT0 is different from a new direct issuance of USDT by Tether on Stellar. It is an interoperability product that extends access to USDT liquidity across supported networks. The distinction matters because the reported $180 billion represents USDT’s broader market capitalization, not the quantity of USDT0 deposited on Stellar at launch. The most-used stablecoin in the world is now on the network purpose-built to move it.@USDT0_to from @Tether is now live on Stellar. pic.twitter.com/Sfam39oaRD — Stellar (@StellarOrg) September 2, 2026 The Stellar Development Foundation said the asset could support payments, treasury transfers, trading and decentralized finance. Actual adoption will depend on the amount bridged to Stellar and the number of businesses and users integrating it. You might also like: Tether sued over alleged unlawful $42.4M USDT freeze USDT0 connects Stellar with a multichain supply Stablecoins transferred through conventional bridges can become separate representations backed by assets locked on another blockchain. Liquidity may consequently become divided between different bridge providers and token contracts. USDT0 aims to reduce this fragmentation through LayerZero’s interoperability technology. Its documentation says participating networks retain redeemable assets on both sides of a transfer while gaining connectivity with other USDT0-supported chains. When USDT0 moves between networks, the system updates supply across the relevant chains instead of creating an unrelated wrapped token. The Stellar Development Foundation said this structure gives participants access to the broader liquidity pool shared by connected ecosystems. That description does not eliminate cross-chain risks. Users remain exposed to the contracts, messaging infrastructure and operational controls that manage transfers. Access to a larger market also does not guarantee deep liquidity on every decentralized exchange or trading pair. The official USDT0 website lists more than 25 supported networks, including Ethereum, Solana, Arbitrum, Avalanche, Polygon, TON, Optimism, Hyperliquid and Stellar. Stellar targets payments in USDT-dominant markets Stellar was designed to support asset issuance and international payments. Its network charges transaction fees in XLM and normally confirms transactions within several seconds.