Stablecoin USDT0 by Tether goes live on Kraken's Ink, marking cross-chain deployment
In a significant move for the cryptocurrency industry, Tether's USDT stablecoin has been introduced to Kraken's Ink Layer-2 network. This development is expected to bring numerous benefits and strategic implications, particularly in terms of high throughput, low fees, and enhanced regulatory potential.
The Ink network, launched by crypto exchange Kraken, is built using Optimism technologies and is compatible with all networks on the OP Stack. It is designed to be a Layer-2 scaling solution that improves transaction speeds and reduces costs while maintaining security through Ethereum's base layer. This makes it an attractive choice for hosting stablecoins like USDT, which require fast, affordable, and scalable transactions for mass adoption.
The use of Omnichain Fungible Token from LayerZero in USDT0 allows for cross-chain issuance and burning of the stablecoin, enabling it to operate on multiple Layer-2 solutions, not just the Ink network. This feature is expected to bring liquidity to dApps like Velodrome and improve the user experience on Ink and other L2 solutions.
Kraken's approach with Ink also emphasizes regulatory alignment, potentially making USDT transactions more compliant and appealing to institutional players or regulated markets. Ink complements Kraken's broader strategy around tokenized equities (xStocks), suggesting that it serves as a foundational infrastructure aimed at future integrations across DeFi and traditional asset tokenization.
Comparatively, other Layer-2 solutions like Base (backed by Coinbase) and Unichain (linked to Uniswap) focus on slightly different priorities. Base prioritizes broad developer adoption in a regulated environment, while Unichain focuses on specialized DeFi use cases. Ink, however, appears more focused on bridging regulated finance with DeFi by providing compliant infrastructure and integrating tokenized traditional assets.
In summary, hosting USDT on Kraken’s Ink Layer-2 network enhances transaction scalability and cost-efficiency while positioning Tether strongly for regulatory compliance and institutional integration. This differentiates Ink from other L2 solutions, which may emphasize broader ecosystem growth (Base) or purely DeFi efficiency (Unichain), making Ink a strategic layer for bridging traditional finance and DeFi.
[1] Kraken Blog Post: https://kraken.com/blog/post/ink-network-launch-usdt-tether-stablecoin/ [2] Coinbase Blog Post: https://blog.coinbase.com/introducing-base-the-foundation-for-a-compliant-decentralized-finance-ecosystem/ [3] Uniswap Blog Post: https://blog.uniswap.org/unichain-the-future-of-decentralized-finance-on-ethereum/
- The Ink network, a Layer-2 scaling solution introduced by crypto exchange Kraken, is designed to host stablecoins like USDT, making it an appealing choice for DeFi, finance, and business entities seeking fast, affordable, and scalable transactions, especially with regulatory compliance and integration with traditional asset tokenization.
- The Ink network, positioned as a compliant infrastructure for bridging traditional finance with DeFi, sets itself apart from other Layer-2 solutions like Base and Unichain, with its focus on strategic alignment with regulatory environments and the integration of tokenized traditional assets, rather than broad developer adoption (Base) or DeFi efficiency (Unichain).
