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USD₮0 arrives on Flare

Flare Updates
USD₮0, the omnichain deployment of USDT is now available on Flare. Backed 1:1 by USDT on Ethereum, USD₮0 brings unified, capital-efficient stablecoin liquidity to Flare’s growing DeFi ecosystem.

Built using LayerZero’s Omnichain Fungible Token (OFT) standard, USD₮0 enables secure, seamless transfers of the world’s most widely adopted stablecoin between Flare and other blockchains—without relying on wrapped tokens or traditional liquidity bridges.

Despite only launching in January 2025, USD₮0 is already gaining momentum:

  • Over $2 billion in USD₮0 volume has been bridged across chains since launch.
  • USD₮0 is live on some of the most widely adopted blockchains, including Arbitrum, Optimism, Ink, Unichain, Sei, Berachain, MegaETH — and now, Flare.
  • With the support of Tether, LayerZero, and Stargate, USD₮0 sets a new standard for cross-chain stablecoin liquidity.
  • Described as a technical breakthrough in stablecoin design, USD₮0 offers a range of benefits to users, blockchain ecosystems, and exchanges, according to the latest report from Chaos Labs.

What are the benefits of USD₮0 for Flare?

USD₮0 is not another stablecoin variant — it’s a foundational omnichain liquidity standard for USDT that unlocks new opportunities for users, builders, and the broader Flare ecosystem.

“USD₮0 helps accelerate real-world stablecoin adoption on Flare by solving one of the industry’s biggest challenges: fragmented utility. By enabling native, cross-chain liquidity, USD₮0 brings seamless interoperability to Flare’s ecosystem. Paired with Flare’s gasless transaction model, this integration creates a frictionless user experience that lowers the barrier for everyday stablecoin usage.” —  Lorenzo R, USD₮0 Co-Founder 

Key features of USD₮0 on Flare include:

  • Competitive yields: Earn industry-leading yields of up to 30% APY (paid in rFLR) from institution-grade stablecoin liquidity, through Flare’s USD₮0 Boost program.
  • OFT-powered interoperability: Move USD₮0 seamlessly between supported chains without wrapping or third-party bridges, thanks to LayerZero’s OFT technology. This supports more efficient capital inflows into Flare's DeFi protocols.
  • Faster transfers: USD₮0 transfers between chains, such as Flare and Arbitrum, take just 30 seconds to a few minutes — significantly faster than traditional bridge solutions.
  • Zero gas fees on Flare: Send USD₮0 within Flare with zero gas. This means frictionless remittances, cost-effective transfers, and more. 

Foundation for XRP DeFi

Perhaps most significantly for Flare users, USD₮0 helps establish the capital base for Flare’s XRP DeFi stack by providing a native stablecoin for FXRP — and soon, for liquid staked XRP users to pair with.

"For Flare’s DeFi ecosystem to flourish and lay the foundation for the XRP DeFi movement, one essential component is a highly liquid, globally accessible stablecoin,” says Flare Co-Founder and CEO, Hugo Philion. ”USD₮0 delivers just that, enabling seamless transfers to and from Flare, while unifying liquidity across chains to drive growth and capital efficiency."

As Flare expands the utility of non-smart contract assets through FAssets, stablecoin liquidity will become a crucial foundation for lending, trading, and liquidity provision across the ecosystem.

How does USD₮0 work on Flare?

Unlike traditional multi-chain stablecoins — where each network maintains an isolated version — USD₮0 enables continuous, interoperable liquidity across chains.

1) Mint

All USD₮0 is minted on the destination chain is backed 1:1 by USDT locked on Ethereum, meaning USD₮0 is fully redeemable at all times.

2) Transfer

USD₮0 can be moved natively between supported blockchains without relying on third-party bridges or fragmented liquidity pools.

3) Redeem

To unlock USDT, users simply redeem their USD₮0 and claim the original asset on Ethereum (or other source chains).

Note: Step 1 is abstracted away from the end-user. Most users will either acquire USD₮0 directly on Flare via DEXs or upcoming CEX listings, or bridge it from Ethereum (or another supported chain) using the USD₮0 Transfer Portal.

Stargate users can also migrate USDT from Ethereum directly onto Flare as USD₮0, or transfer USD₮0 from the following chains directly onto Flare — with no extra bridging steps or fees:

  • Arbitrum
  • Ink
  • Berachain
  • Unichain
  • Optimism
  • Sei
  • Corn

Next steps

Flare users can begin taking advantage of faster, cheaper, and seamless cross-chain stablecoin transfers with USD₮0:

  • Migrate bridged USDT for USD₮0 using the migration tool in the Flare Portal or directly on Stargate.
    • Stargate will eventually disable the USDT transfers on its frontend, but USDT will always remain redeemable for USD₮0.
    • Flare dApps are planning to migrate USDT pools to USD₮0.
    • If users don’t migrate to USD₮0, holders of bridged USDT will need to use Hydra to bridge back.
  • Seamlessly transfer from Kraken

1. On the Withdraw page, select USDT as the asset you would like to Withdraw.

2. Under the Network drop down menu, you'll see Flare (USD₮0) right there at the top, so click that, then designate your Flare wallet address.

3. Confirm and you're all set. Your withdrawn USDT from Kraken will be deposited into your Flare Wallet as USD₮0.

  • Try gasless USD₮0 transfers on Flare at https://gasl.es — soon to be integrated into the Flare Portal.
  • Acquire USD₮0 on Flare and earn yield in live pools on SparkDEX and Kinetic (with Enosys and Blazeswap coming soon).
  • Borrow USD₮0 on Kinetic
  • Use USD₮0 as collateral for perps on SparkDEX Eternal