USDT0 Goes Live on Stellar; Underlying USDT Is Locked in an Ethereum Contract

USDT0 said in a release published on September 2 local time that it had gone live on Stellar, a blockchain used for payments and cross-border remittances. USDT0 is not USDT issued directly by Tether on Stellar, but a token developed and launched by Everdawn Labs to connect USDT liquidity across multiple blockchains. Crypto Briefing reported that Everdawn Labs holds a license from Tether to operate USDT0 and runs the entire system. According to the USDT0 technical document The USDT0 Network, the original asset, USDT, is locked in an OFT Adapter contract on Ethereum Mainnet, and an equal amount of USDT0 is minted on the destination chain under the Omnichain Fungible Token (OFT) standard developed by LayerZero. To redeem, USDT0 is burned on any supported chain and the USDT locked in the Ethereum OFT Adapter contract is released. This structure allows USDT0 to move across multiple chains without requiring a separate pool of bridge liquidity on each chain. However, because the USDT underlying the USDT0 issued this way on Stellar is locked in a single Ethereum contract, redemption also depends on that contract. The release said Stellar-based USDT0 was available through 10 providers, including Kraken, Fireblocks, Freighter, LOBSTR, Meru and SushiSwap, and that Exodus was expected to add support soon. A disclaimer at the end of the release states that USDT0 and USDT are issued and managed by third parties. It says the Stellar Development Foundation does not issue, custody, redeem or guarantee any of the digital assets mentioned and makes no representation regarding their reserves or backing, solvency, regulatory status or continued availability. The release said cumulative USDT0 transfers had exceeded $100 billion across 29 blockchain ecosystems since its January 2025 launch. It added, however, that the market capitalization, trading volume and transfer-value figures presented in the material were based on third-party data and had not been independently verified. The release also said availability through exchanges and wallets was subject to each platform's terms, eligibility requirements and regulatory approvals, meaning that going live on Stellar does not imply immediate availability on every platform.