TL;DR
- USDT0, the cross-chain version of Tether’s USDT, is now live on Rootstock, Bitcoin’s Layer 2 network, boosting the stablecoin’s reach into Bitcoin-powered DeFi.
- This expansion comes as Everdawn Labs pushes for smoother interblockchain use.
- Already deployed on Ethereum, Arbitrum, Unichain, and the OP Superchain, USDT0 aims to strengthen liquidity and flexibility for BTCFi developers, institutions, and everyday users worldwide.
The arrival of USDT0 on Rootstock signals an important milestone for Bitcoin’s decentralized finance ambitions. Rootstock, active since 2018, bridges Bitcoin’s robust security with the smart contract capabilities more common on Ethereum. By enabling Tether’s omnichain stablecoin to operate within this ecosystem, users can now transfer stablecoins into Bitcoin-based apps more efficiently, sidestepping the high fees and slower processes that often come with bridging assets between chains.
Growing Interoperability With Bitcoin DeFi
Rootstock’s integration with USDT0 is handled by Everdawn Labs rather than Tether itself. This structure allows the token to maintain full 1:1 backing with the original USDT while freeing it from single-chain constraints. As Bitcoin’s DeFi, sometimes called BTCFi, gains momentum, having a reliable dollar-pegged token directly connected to Bitcoin’s ecosystem is increasingly valuable for both traders and developers. Rootstock’s design retains Bitcoin’s proof-of-work security but adds EVM-compatible smart contracts, giving builders the same development tools found on Ethereum.
The push toward omnichain functionality is not limited to Rootstock alone. USDT0 already operates across major networks such as Ethereum, Arbitrum, and newer scaling solutions like the OP Superchain and Unichain. This spread means stable liquidity can move seamlessly between chains, allowing decentralized applications to tap into deep pools of dollar liquidity without relying on third-party bridges that may pose security risks. Such cross-chain mobility could inspire new financial products and expand stablecoin adoption for institutional investors.
Developers Eye BTCFi Expansion
For builders, the timing could not be better. Interest in Bitcoin-native DeFi has surged as developers look for alternatives to Ethereum’s congested mainnet and rising fees. By providing a stable, well-known dollar asset within the Bitcoin Layer 2 space, Rootstock opens doors for lending protocols, tokenized assets, and other decentralized services that require predictable liquidity.
With over $160 billion in circulation, Tether’s USDT remains the dominant stablecoin in crypto. This cross-chain version aims to preserve that lead by reducing costs, broadening accessibility, and encouraging innovation. As more Bitcoin-focused projects emerge, tools like USDT0 may be crucial for helping Bitcoin evolve from a store of value to a more versatile foundation for programmable finance with lower barriers to entry.
