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The USDT0 Network

The USDT0 Network operates on a robust lock-and-mint mechanism powered by the Omnichain Fungible Token (OFT) standard. This system ensures secure and efficient cross-chain transfers while maintaining full asset backing across all USDT0 products.

Lock-and-Mint Architecture​

All tokens follow the same fundamental process:

  1. Locking Assets: The original asset (USDT, XAUT or USAT) is locked in the OFT Adapter smart contract on Ethereum Mainnet.
  2. Minting on Destination Chains: Equivalent tokens (USDT0, XAUT0 or USAT) are minted on the target chain, maintaining a strict 1:1 backing with the locked assets on Ethereum. This ensures complete transparency and trust.
  3. Seamless Cross-Chain Transfers: Our advanced omnichain messaging layer enables secure and cost-effective transfers across supported chains.
  4. Redemption: Tokens can be redeemed by burning them on any chain and unlocking the corresponding original assets on the Ethereum OFT Adapter. This ensures a consistent and secure relationship between the locked and minted assets.

Dedicated Lockbox Routes​

Some chains connect to Ethereum through their own lockbox rather than the shared OFT Adapter. The lock-and-mint flow is the same, but the locked USDT is held in a separate adapter contract that is paired with one destination chain only.

IOTA is served this way. IOTA here means IOTA L1, the Move-based IOTA mainnet, not IOTA EVM.

  • Ethereum to IOTA: USDT is locked in the IOTA lockbox, a dedicated OFT Adapter on Ethereum, and USDT0 is minted on IOTA.
  • IOTA to Ethereum: USDT0 is burned on IOTA and USDT is released from the IOTA lockbox.
  • Other chains: USDT0 on IOTA cannot be sent directly to any other USDT0 chain. Move it to Ethereum first, then use the main USDT0 route.

The IOTA lockbox is owned by the same multisig as the main OFT Adapter and is verified by the same 3-of-3 DVN set. On IOTA, the admin capabilities are held by a native IOTA multisig. Addresses for the lockbox and the IOTA deployment are on the Deployments page.

Role of the OFT Standard​

The Omnichain Fungible Token (OFT) standard is an open-source protocol developed by LayerZero to facilitate interoperability across chains. The OFT model provides a universal framework for cross-chain messaging and token management. Key advantages include:

Unified Liquidity Management​

The OFT standard ensures that liquidity is efficiently managed across all connected chains, reducing fragmentation and improving capital efficiency. Instead of duplicating liquidity across multiple wrapped versions or bridge pools, USDT0 maintains a single source of truth on Ethereum.

High Security​

Transactions are validated through a decentralized network of oracles and relayers. All cross-chain actions are independently verified, ensuring network integrity and reducing potential attack vectors.

Scalability​

The OFT model supports seamless expansion to new blockchains and protocols, allowing our products to effortlessly integrate with new and existing ecosystems without fragmenting liquidity.

Efficiency​

By eliminating the need for intermediary bridges or wrapped assets, the OFT standard streamlines onchain experiences for developers and users alike. Builders benefit from reduced complexity and operational overhead while users enjoy simpler transactions, lower fees, and faster settlement times.

Supported Assets​

The USDT0 Network offers omnichain deployments of multiple Tether-issued assets. All USDT0 Network products share the same core architecture outlined above, while retaining their own unique characteristics:

USDT0​

USDT (Tether) is the largest and most widely used stablecoin, designed to maintain a stable 1:1 peg to the U.S. dollar. It serves as a bridge between traditional fiat currencies and the crypto market, offering a digital dollar that moves seamlessly across blockchains. As a fiat-collateralized stablecoin, USDT is backed by reserves consisting primarily of cash, cash equivalents, and short-term U.S. Treasuries.

USDT plays a central role in the crypto ecosystem—traders use it to hedge against volatility, exchanges rely on it as a primary quote currency, and DeFi protocols leverage its stability for lending, borrowing, and yield farming. It also enables fast, cost-effective international transfers compared to traditional banking systems.

USDT0 extends this utility across 15+ chains through the OFT standard, enabling seamless cross-chain transfers without fragmented liquidity or wrapped token complexity. The Legacy Mesh further connects existing USDT deployments to the USDT0 Network.

XAUT0​

XAUT (Tether Gold) is a digital asset backed by physical gold, where each token represents ownership of one troy ounce of gold stored in secure Swiss vaults. It bridges traditional precious metals investment with blockchain technology, offering a way to hold gold without the complexities of physical storage, insurance, or custodial fees. As a commodity-backed token, XAUT provides direct exposure to gold's spot price.

Gold has served as a store of value for millennia—investors use XAUT to hedge against inflation and currency devaluation, diversify portfolios beyond traditional assets, and access gold markets with 24/7 liquidity. Unlike physical gold or ETFs, XAUT enables fractional ownership, instant settlement, and global transferability without intermediaries.

XAUT0 extends this utility across 10+ chains through the OFT standard, enabling seamless cross-chain transfers without fragmented liquidity or wrapped token complexity. Gold-backed value can now flow freely across DeFi ecosystems, unlocking new use cases like collateralized lending and cross-chain treasury management.

USAT​

USAT is a U.S. dollar stablecoin issued by Anchorage Digital Bank under the GENIUS Act and operated by Tether. It maintains a 1:1 peg to the U.S. dollar, giving users a regulated digital dollar for payments, settlement, and onchain finance.

USAT is available on 2 chains through the OFT standard, enabling seamless cross-chain transfers without fragmented liquidity or wrapped token complexity.

Through integration with the OFT standard and LayerZero infrastructure, the USDT0 Network delivers a unified solution for cross-chain asset functionality, setting a new benchmark for reliability, scalability, and ease in omnichain finance.