Wire Wants Ethereum L2 Arbitrum for Cross-Chain USDT System

For its fresh cross-chain action, Legacy Mesh, Tether chose Layer 2 Ethereum process Arbitrum as the infrastructure provider.

The announcement comes after Tether released a new sign, known as USDT0, in mid-January to help easier cross-chain exchanges of USDT outside of cryptocurrencies that currently support it. The goal was to accomplish it without resorting to methods like bitcoin bridges or token putting.

USDT0 is pegged one-to-one with Tether’s premier bitcoin, USDT. It’s now the world’s largest cryptocurrency with a market cap of$ 141 billion according to CoinGecko. It runs on LayerZero’s Omnichain Fungible Token ( OFT ) standard, which has been used by other stablecoins such as PayPal’s USD stablecoin, PYUSD.

The Arbitrum bitcoin will work as a “hub network”, connecting the USDT and USDT0 sites. Through it, USDT operations on Arbitrum, Ethereum, Tron, Ton, Ink, and Berachain likely link back to a consolidated USDT0 system.

Steven Goldfeder, co-founder and CEO of Offchain Labs, which develops Arbitrum, said,” The Legacy Mesh is an important step for Arbitrum, ensuring that users and developers have access to strong, wet businesses regardless of the cryptocurrency they are on”.

When it comes to increasing connectivity with other cryptocurrencies, Tether has been on a slide since 2025. At the end of January, Tether announced the move at a Bitcoin conference in El Salvador, and the following day, Tether announced connectivity with Bitcoins via the Lightning Network.

The stablecoin lender has also been providing unprecedented financial statistics. Tether reported annual net income exceeding$ 13 billion in Q4, as well as a history amount of coverage to U. S. Treasuries.

However, the financial success is being accompanied by a lot of regulator investigation.

Howard Lutnick, president Donald Trump’s choice for the position of commerce secretary, just endorsed the implementation of government assessments for stablecoin reserves to stop unstable currencies like Tether from loosing their dollar value.

Arbitrum has also served as the foundation for a number of different equipment initiatives in recent months.

Bitcoin’s templates part BitcoinOS just announced an inclusion with Arbitrum One to bridge DeFi applications on Ethereum between Bitcoins customers.