USDT0 goes live on Stellar, enabling access to $180B+ in USDT liquidity

Stellar just got plugged into the biggest stablecoin liquidity pool in crypto. USDT0, the omnichain version of Tether’s USDT, went live on the Stellar network in early September, giving users on the payments-focused blockchain direct access to more than $180 billion in unified USDT liquidity.

The integration runs on LayerZero’s Omnichain Fungible Token (OFT) standard, which means Stellar users can move USDT across chains without dealing with wrapped tokens or fragmented liquidity pools.

How the plumbing works

USDT0 doesn’t operate like a traditional bridged token. Instead of locking assets on one chain and minting a synthetic version on another, it uses a burn-and-mint mechanic. When a user sends USDT0 from one chain to Stellar, the tokens are burned at the source and freshly minted at the destination.

The security layer backing this process is a 3/3 Decentralized Verification Network, or DVN. Three independent verifiers, LayerZero, USDT0, and Canary, must all sign off on every cross-chain transfer before it executes.

The whole operation is run by Everdawn Labs, which holds a license from Tether to operate USDT0. Every token in circulation is backed 1:1 by real USDT locked on the Ethereum network.

Stellar’s expanding stablecoin footprint

With this launch, Stellar joins a USDT0 network that spans more than 20 chains, including Ethereum, Solana, and Hedera.

USDT0 first launched in January 2025 and has since processed significant transaction volumes across its supported chains.

At launch, USDT0 on Stellar was immediately available through multiple platforms, including Kraken, Freighter, Lobstr, and Bitget, with additional integrations expected to follow.

Why omnichain stablecoins are gaining ground

LayerZero’s OFT standard provides the framework that makes this possible. By standardizing how tokens are burned, minted, and verified across chains, it removes the need for each new deployment to reinvent the wheel on security and interoperability. For Stellar, adopting this standard means inheriting the entire existing USDT0 liquidity network on day one rather than building from zero.

The risk to watch is concentration. With Everdawn Labs as the sole licensed operator and all backing collateral sitting on Ethereum, there’s a single-point-of-failure question that serious users will want to evaluate. The 3/3 DVN model mitigates some bridge risk, but the operational and custodial layers still depend on a relatively small number of entities.

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