Tether Develops Bridge-Free Solution for Cross-Chain USDT Transfers

TLDR

• Tether has invested in self-custodial crypto wallet Zengo to expand stablecoin adoption and improve security features
• Zengo utilizes MPC technology to eliminate seed phrase vulnerabilities and supports 10 major blockchains
• Tether launched Legacy Mesh system to connect USDT0 with existing USDT deployments across multiple networks
• Arbitrum serves as the hub chain for the Legacy Mesh, linking USDT and USDT0 networks
• The system brings together 98% of all USDT (138 billion) within a unified framework

Tether, the company behind the largest stablecoin by market capitalization, has announced two major initiatives aimed at expanding its reach and improving user experience. The company has invested in the self-custodial crypto wallet Zengo and launched a new cross-chain integration system called Legacy Mesh.

The investment in Zengo represents Tether’s commitment to making cryptocurrency more accessible and secure for users. Zengo’s wallet currently supports ten major blockchains, including Bitcoin, Ethereum, and Base, offering users a range of options for managing their digital assets.

Zengo’s platform features proprietary payment tools designed to simplify cross-chain swaps for both experienced cryptocurrency users and newcomers. A key security feature of the wallet is its use of MPC (multi-party computation) technology, which eliminates the need for traditional seed phrases that can be vulnerable to theft or loss.

Paolo Ardoino, CEO of Tether, emphasized the company’s focus on user empowerment through this investment. “Tether is committed to delivering reliable and secure tools that empower users to take control of their digital assets,” he stated. The partnership aims to help more people worldwide access blockchain technology with confidence.

Ouriel Ohayon, co-founder and CEO of Zengo, highlighted the importance of stablecoins in the financial ecosystem. He pointed out that USDT currently serves over 400 million users worldwide, making it the most widely used stablecoin in the market.

Legacy Mesh System

In a parallel development, Tether has introduced the Legacy Mesh system, designed to connect USDT0 and existing USDT deployments across multiple blockchain networks. This new infrastructure spans several major networks including TRON, Ton, Ethereum, Arbitrum, Ink, and Berachain.

The Legacy Mesh system addresses a common challenge in the cryptocurrency space by eliminating the need for third-party bridges, which have traditionally led to liquidity fragmentation and complex token management. Instead, it creates a unified framework for stablecoin interoperability.

Arbitrum has been designated as the hub chain for the system, connecting USDT and USDT0 networks. This positioning enables native USDT0 interoperability and allows users to access liquidity pools more efficiently.

The system utilizes Ethereum, TRON, and TON liquidity pools to facilitate cost-effective and secure transfers through LayerZero messaging. According to Tether, this integration brings together 98% of all USDT, approximately 138 billion dollars worth, within a unified system.

The implementation of the Legacy Mesh system is taking place in phases. Currently, transfers within the Legacy Mesh and to Arbitrum are operational. Future plans include enabling multihop transfers from Legacy Mesh chains to USDT0 networks outside Arbitrum, including Ink and Berachain.

This development follows the January 16 announcement of USDT0, a multichain version of USDT created in partnership with LayerZero. USDT0 operates on the Omnichain Fungible Token (OFT) standard, which enables cross-chain liquidity without requiring intermediary bridges or wrapped assets.

The OFT standard relies on a decentralized network of oracles and relayers to maintain security and efficiency across different blockchain networks. This approach represents a departure from traditional cross-chain solutions that depend on third-party bridges.

For users, these developments mean simpler and more secure ways to move their USDT across different blockchain networks. The Legacy Mesh system particularly focuses on making liquidity movement from established chains like Tron and Ethereum into newer ecosystems like TON more straightforward.

Tether’s latest moves come as the company works to maintain its position as the leading stablecoin provider in an increasingly competitive market. As of February 2025, the infrastructure for transfers within the Legacy Mesh and to Arbitrum is fully operational.

Users can now access these features through the updated systems, with additional functionality planned for release in the coming months. The company has stated that these developments align with their goal of creating a more unified on-chain dollar system.