Flare Launches USD₮0 to Unify USDT and XRP Across Chains

TLDR

• Flare launches USD₮0 for seamless, gasless USDT transfers across chains.
• USD₮0 offers zero-fee transfers and high-yield rewards in rFLR tokens.
• USD₮0 uses burn-and-mint for faster, more efficient stablecoin transfers.
• Flare adds USD₮0 to boost DeFi liquidity for XRP, BTC, and DOGE.
• Migrate to USD₮0 via Flare Portal for gasless transfers and staking.

Flare Network has introduced USD₮0, an omnichain deployment of USDT, aiming to bridge stablecoin liquidity across major blockchain ecosystems. This development provides Flare users and developers with direct access to the world’s most widely adopted stablecoin, eliminating reliance on wrapped tokens or third-party bridges.

USD₮0 is live on @FlareNetworks.

Bringing the liquidity of the world’s largest stablecoin, primed for XRP DeFi on Flare.

Your USDT, now on Flare. pic.twitter.com/NxTiASXvYI

— USDT0 (@USDT0_to) April 28, 2025

Powered by LayerZero’s Omnichain Fungible Token (OFT) technology, USD₮0 allows seamless, efficient transfers across major blockchains, including Ethereum, Arbitrum, Optimism, Sei, and now Flare. Since its initial deployment in January, over $2 billion worth of USD₮0 has been bridged on-chain, supporting its rapid adoption as a liquidity standard in decentralized finance (DeFi) applications.

Native Stablecoin Access on Flare

The integration of USD₮0 offers Flare users the ability to conduct stablecoin transactions within the network at zero gas fees. This feature significantly enhances the affordability and accessibility of cross-border remittances and crypto-based payments, removing a key barrier to broader adoption. Additionally, users holding USD₮0 on Flare can participate in the USD₮0 Boost program, offering up to 30% annual percentage yield (APY) paid in rFLR tokens through institutional-grade liquidity pools.

Flare’s initiative seeks to connect USDT with XRP, the second-largest non-smart contract asset by market capitalization. The network provides a unified liquidity solution to support the development of Flare’s emerging XRP DeFi ecosystem. This move is expected to bolster liquidity for FXRP and upcoming liquid-staked XRP assets, supporting greater utility and market participation.

Enhancing Cross-Chain Liquidity and Capital Efficiency

USD₮0 operates under LayerZero’s OFT standard, enabling stablecoin movement across blockchains through a burn-and-mint mechanism, rather than traditional bridging. This structure improves capital efficiency for natively available on each supported chain within seconds to minutes.

Your USDT, now on @FlareNetworks.

We’re excited to see the world’s largest stablecoin expand to Flare through LayerZero.@USDT0_to now connects $140B+ of USDT across chains, enabling 1:1 transfers and seamless usage in DeFi. https://t.co/BA4L4B9rnn

— LayerZero (@LayerZero_Core) April 28, 2025

Every USD₮0 token is fully backed 1:1 by USDT held in non-custodial contracts on Ethereum, ensuring transparency and minimizing counterparty risks. Developers on Flare can integrate USD₮0 as they would a standard ERC-20 token, with the added benefit of omnichain functionality, streamlining application deployment and interoperability without the complexities of managing multiple bridged versions.

Strengthening Flare’s Role in Interoperable Finance

The launch of USD₮0 aligns with Flare’s broader objective of building an infrastructure layer for interoperable DeFi systems. With Flare’s enshrined oracles and Trusted Execution Environments (TEEs), applications can access real-time external data and perform secure cross-chain transactions. Integrating deep stablecoin liquidity addresses one of the last major requirements for creating a full-featured DeFi ecosystem on Flare.

Users holding bridged USDT can migrate to USD₮0 through the Flare Portal’s dedicated migration tool. Following the integration, platforms such as SparkDEX and Kinetic will provide gasless transfers and high-yield staking opportunities, promoting further engagement within Flare’s network.

By introducing native USDT liquidity without intermediaries, Flare is a leading platform for decentralized finance innovation across high-value assets such as XRP, Bitcoin (BTC), and Dogecoin (DOGE).