Tether has made a significant move by selecting Arbitrum as the infrastructure provider for its newly created crosschain stablecoin, USDT0. As the world’s largest stablecoin, USDt boasts a market capitalization exceeding $141 billion, reinforcing its dominant position in the crypto market.
On February 11, Tether announced that Arbitrum One would be the main hub facilitating USDt deployments across popular blockchains, including Ethereum, Tron, TON, and Celo. This new arrangement utilizes Arbitrum’s Legacy Mesh technology, providing a seamless and efficient way to transfer USDt between these major blockchains.
According to Steven Goldfeder, CEO of Arbitrum developer Offchain Labs, this technology enables users and developers to enjoy deep, liquid markets irrespective of the blockchain they utilize. The aim is to foster broader adoption of USDt while enhancing the scalability of the stablecoin across various networks.
Currently, Tether’s USDt maintains a staggering market influence, commanding over 61% of the $230 billion stablecoin market. Despite facing increasing competition, notably from Circle’s USD Coin (USDC), which holds the second position with $59 billion, Tether’s innovative approach continues to position it ahead in the race.
The launch of USDT0 on January 16 was in collaboration with LayerZero, and the first deployment occurred on Ink, a scaling solution provided by the crypto exchange Kraken. This integration highlights Tether’s commitment to driving innovation in the stablecoin sector.
In addition to its technological advancements, Tether has reported impressive financial performance. Despite regulatory uncertainties surrounding the status of USDt in the European Union, Tether announced a record-breaking profit of $13 billion in 2024, thanks in part to a substantial accumulation of US government bonds that are yielding significant interest.
Tether’s US Treasury portfolio reached approximately $113 billion by the end of 2024, making it larger than the revenues of most governments worldwide. The company’s success is attributed not only to the growing adoption of stablecoins in the cryptocurrency market but also to their potential transformative impact on traditional remittance services and cross-border payments.
As reported by Chainalysis, utilizing stablecoins for remittances can lead to savings of roughly 60% compared to conventional fiat methods, particularly for transactions from regions such as Sub-Saharan Africa. This efficiency positions stablecoins as a powerful alternative for global remittance services, further solidifying Tether’s leadership in the stablecoin arena.
