Key highlights:

  • Tether’s USDT0 now connects Stellar to a unified cross-chain liquidity pool, instead of relying on separate wrapped-token pools
  • USDT0 is live on SushiSwap on Stellar, opening the door for lending, collateral, and yield strategies built around USDT’s liquidity base
  • XLM ticked up by 2% with trading volumes rising by 4% following the announcement

Tether’s USDT0, an omnichain version of its USDT stablecoin designed to move dollar liquidity across different blockchains, has gone live on the Stellar network. The integration connects Stellar users to USDT0 liquidity across multiple blockchain networks, strengthening the network’s position in cross-border payments and dollar-based settlement.

USDT0 connects Stellar to wider USDT liquidity

USDT0 uses LayerZero’s Omnichain Fungible Token standard to move dollar liquidity between supported networks. Rather than creating separate pools of wrapped tokens on each blockchain, the infrastructure is designed to maintain a unified USDT0 supply across chains.

The Stellar integration gives applications and users access to broader liquidity while retaining the network’s low-cost, fast-settlement infrastructure. Stellar says transactions reach finality in around five seconds and cost less than a cent, making the network particularly suited to payments and financial applications.

“USDT0, the infrastructure that brings Tether’s USDT to every network, is now live on the Stellar network, marking a significant milestone for one of the longest-running blockchains built for real-world payments and cross-border finance.”

According to the Stellar Development Foundation, the integration is significant in markets where USDT plays a major role in dollar-based transactions. Stellar has highlighted Africa, Latin America, and the Asia-Pacific as important regions for USDT adoption. 

Connecting those users to USDT0 will give fintechs, payments providers and businesses a direct way to move dollar liquidity across borders. Potential use cases include remittances, merchant payments, payroll, treasury transfers and cross-border settlements.

The announcement helped send the Stellar price up 7% in the last 24 hours, although we have to point out that the entire cryptocurrency market has been rallying today. At press time, XLM is changing hands at $0.186.

Stellar also gets a major DeFi boost

A closer look at the integration reveals that it extends beyond payments. USDT0 is already available through SushiSwap on Stellar, with additional integrations expected as developers begin incorporating the asset into decentralized finance applications.

“With USDT0 now available on Stellar, DeFi protocols can build around an asset with more than $180 billion in market capitalization,” read the announcement.

Per the announcement, USDT can be deployed as collateral, borrowed against, traded, and used across yield opportunities. 

Since its launch in January 2025, USDT0 has facilitated over $100 billion in total value moved across connected blockchain ecosystems. Stellar’s addition gives the network access to an interoperability ecosystem built around one of crypto’s largest dollar-denominated liquidity pools.

Meanwhile, USDT is extending its lead over the stablecoin market with a raft of partnerships. However, it faces stiff competition from Circle’s USDC and US banks teaming up to float their own USD-backed stablecoin.