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Tether Announces Legacy Mesh — The Liquidity System Across Multiple Blockchains Without the Need for a Cross-Chain Bridge Launched on February 11, 2025, this infrastructure is meant to link USDT0 to existing USDT deployments on Ethereum, Tron, Ton, Arbitrum, Ink, and Berachain.
According to the blog post by the Ripple team, the initiative facilitates stablecoin transfers between different networks, enabling users to transfer funds more efficiently and with less risk to third-party bridge dependencies. With this Arbitrum hub setup, Tether is enabling enhanced cross-chain interoperability between USDT and USDT0 networks.
What is USDT0?
On January 16, 2025, Tether launched USDT0 in collaboration with LayerZero. This type of USDT is based on the Omnichain Fungible Token (OFT) standard, which allows for cross-chain liquidity without the need for wrapped assets or middle bridges.
OFT, by contrast, uses a decentralized network of oracles and relayers instead of the old-school model. This provides higher efficiency, lower security threats, and better usability for stablecoin holders.
Revolutionising Cross-Chain Transfers
Existing solutions for cross-chain USDT transfers rely heavily on third-party bridges, which lead to liquidity fragmentation, high fees, and cumbersome asset management. The Legacy Mesh addresses these problems by enabling inter-blockchain liquidity transfers.
Arbitrum is the bridge between USDT0 and other networks and is indispensable to the operation of this system. Yes, segmenting users directly by tapping into deeper liquidity pools, like more efficient swaps and transactions across supported chains
The move is significant, and Tether CEO Paolo Ardoino made touch with the same by stating:
“All Roads Lead To On-Chain Dollar System: Bringing 138 Billion USDT Together — Legacy Mesh Is Next Significant Step It allows liquidity from chains such as Tron and Ethereum to be freely and independently moved into ecosystems such as TON and the USDT0 networks.”
What is the Legacy Mesh, and How Does it Help Liquidity?
Features: Legacy Mesh Pools are built on Ethereum, Tron, and Ton liquidity pools and charge users only for access to the pool as the underlying pools reside on the LayerZero messaging protocol, ensuring low-cost and trusted transactions.Linking USDT deployments to the largest USDT0 reserve on Arbitrum, 98% of all USDT has now been placed in a single liquidity structure. This not only increases capital efficiency for traders and institutions and guarantees dependable access to stablecoin liquidity across DeFi applications.
Real-Time Transfers and Developments Ahead
Transfers to the Legacy Mesh and to Arbitrum are now live. In future updates, the ability for multihop transfers will make transferring from Legacy Mesh chains to USDT0 networks outside Arbitrum, such as Ink and Berachain, seamless.That means users will soon engage with an even broader chain network, and the benefits and availability of USDT0 will see a multiplicative effect.
Why This Issue for the Stablecoin Market
Since Tether holds more than $138 billion in circulating USDT, the Legacy Mesh will further cement its leadership in the stablecoin market. Removing dependence on third-party bridges results in quicker, safer, cheaper transactions, a critical pain point in cross-chain finance.
Moreover, the development further cements Tether’s dominance as the leading stablecoin provider and could also entice more DeFi protocols to USDT0 integration.
Final Thoughts
Tether’s Legacy Mesh is changing the way stablecoins operate across multiple blockchains by removing liquidity fragmentation and increasing efficiency. With Arbitrum at its core, this bridge-free multichain liquidity solution could serve as the archetype for future cross-chain stablecoin transactions.
With DeFi adoption booming, the need for a strong, scalable & secure stablecoin infrastructure has never been clearer. The Legacy Mesh is a step toward that future, wherein Tether’s USDT continues to be in the driver’s seat of the digital asset economy.
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Frequently Asked Questions
What is Legacy Mesh?
Pionex has partnered with Legacy Mesh, a network that allows the stablecoin issuer to connect USDT0 at the network level with different blockchains and facilitate liquidity migration without using third-party bridges.
What is Legacy Mesh, and how does it support USDT transfers?
It eliminates bridge dependence, using Arbitrum as a hub for speedy, safe, and cost-effective transfers across chains, including Ethereum, Tron, Ton, and more.
What is a legacy mesh-supported blockchain?
This is due to the fact that it supports Ethereum, Tron, Ton, Arbitrum, Ink, and Berachain, enabling stablecoin users to transfer funds securely across these networks without liquidity fragmentation.
Is Legacy Mesh live now?
Transfers from Legacy Mesh and transfers to Arbitrum are live, and multihop transfers to several other networks like Ink and Berachain are in the pipeline.
Glossary of Key Terms
Legacy Mesh: A liquidity ecosystem that allows for frictionless cross-chain USDT transfers without the use of third-party bridges or wrapped tokens.
USDT0: a multidimensional version of the stablecoin, which the stablecoin issuer launched in concert with LayerZero, based on the Omnichain Fungible Token (OFT) format for cross-chain transactions.
Omnichain Fungible Token (OFT): A token standard facilitating cross-chain movement of tokens, without bridges working with decentralized oracles and relayers for interoperability.
Arbitrum: A Layer-2 scaling solution for Ethereum and the Mesh’s USDT Liquidity transfer center.
LayerZero: A blockchain intercommunication protocol to enable permissionless, lightweight, and cross-chain communication between the Legacy Mesh-enabled chains.
Cross-Chain Transfers: The other terminology for digital asset mobility between multiple blockchain networks without the use of conventional bridges or wrapped tokens.
Liquidity Pools: Reserves running on smart contracts that enable the swapping of tokens and transactions with stablecoins, enabling efficient and cheap transfers of funds.
Decentralized Finance (DeFi): A financial system deployed on top of the blockchain networks, allowing the user to trade, borrow, and lend digital assets without relying on centralized intermediaries.
