Polygon Upgrades PoS USDT to USDT0 Standard

**Plasma has accelerated its USDT0 infrastructure**, cutting settlement times with Ethereum in half. This upgrade enhances transaction speed within what's described as the largest USDT0 ecosystem. **Key developments:** - Settlement between Plasma and Ethereum now **2x faster** - Plasma maintains the **largest native supply of USDT0** deployed onchain - Plasma, Arbitrum, and Polygon hold the highest concentrations of native USDT0 - Over **$2B in USDT0 liquidity** available on Plasma through Backpack integration The improvement builds on Plasma's position as a major hub for USDT transfers, offering users faster cross-chain movement of the stablecoin. The enhanced settlement speed could reduce waiting times for users moving funds between Plasma and Ethereum mainnet.

**Tether's USDT0 has integrated with Backpack across 8 blockchain networks**, creating unified omnichain liquidity for the world's largest stablecoin. **Key developments:** - USDT0 now accessible through Backpack's all-in-one crypto wallet and exchange - Integration spans multiple chains including Polygon, Arbitrum, and Sei Network - Enables seamless cross-chain USDT transfers and trading The expansion builds on previous deployments that began in September 2025, when USDT0 first launched on Backpack across three chains. The omnichain approach allows users to move USDT freely between supported networks without traditional bridging friction.

Rootstock is bringing **USDT liquidity** to Bitcoin-based decentralized finance (BTCFi). The integration leverages USDT0, a unified liquidity protocol that connects the world's largest stablecoin across multiple blockchains. **Key developments:** - USDT0 serves as a bridge protocol for USDT and XAUt (gold-backed token) - Built on LayerZero infrastructure for cross-chain functionality - Aims to expand DeFi capabilities on Bitcoin's network through Rootstock The move addresses Bitcoin's limited native DeFi ecosystem by importing established stablecoin liquidity. Rootstock operates as a Bitcoin sidechain, enabling smart contract functionality while maintaining connection to Bitcoin's security model. This development follows the broader trend of bringing traditional DeFi tools to Bitcoin, which has historically lacked the programmability of networks like Ethereum.

**USDT0** has launched as an omnichain stablecoin solution built on LayerZero's OFT standard, designed to eliminate liquidity fragmentation across DeFi networks. **Key Features:** - Unifies USDT liquidity across multiple blockchains including Solana, Avalanche, and MegaETH - Uses lock-and-mint architecture anchored to Ethereum reserves - Eliminates bridge exploits and double-counting risks - Single contract integration for protocols and wallets **Market Impact:** - Now live on Kraken via Plasma network - Targets institutional adoption alongside retail users - Enables deeper markets and tighter spreads for new chains - Powers capabilities on Hyperliquid's HyperEVM and HyperCore The infrastructure addresses a critical DeFi challenge where chains without deep stablecoin liquidity struggle with swaps, lending, and consistent asset pricing. [Read the full blog](https://paragraph.com/@tetherzero/how-omnichain-liquidity-is-reshaping-defi)

**USDT0 continues expanding across multiple blockchain ecosystems** with new integrations designed to improve cross-chain liquidity and user experience. **Key integration benefits:** - **DEXs and AMMs**: Route trades with consistent pricing and tighter spreads - **Lending markets**: Use USDT0 as native collateral for reduced risk - **Vaults and yield aggregators**: Accept deposits from multiple chains while settling on one **Recent partnerships include:** - LiquidLaunch on HyperEVM for improved trading path optimization - HyperSwap introducing USD-native stablecoin pools - Hyperwave enabling direct hwHLP access from any USDT0 chain - HypurrFi adding tokenized gold collateral options - Bifrost Wallet supporting seamless Flare ecosystem swaps These integrations focus on **practical utility** - reducing slippage, improving capital efficiency, and removing friction for users deploying capital across different chains. The expansion demonstrates how omnichain composability works when liquidity can move freely between ecosystems.