Flare announced on the evening of the 28th that the fully deployed version of Tether (USDT), USD₮0, has officially launched on Flare. Following the announcement, Flare's native token $FLR surged 18% in one hour.
Flare announced on April 28 that the fully deployed version of Tether (USDT), USD₮0, is now available on Flare. USD₮0 is 1:1 pegged to USDT on Ethereum, bringing unified, capital-efficient stablecoin liquidity to Flare's growing DeFi ecosystem.
USD₮0 is built using LayerZero's cross-chain fungible token (OFT) standard, allowing for secure and seamless transfers of the most widely adopted stablecoin between Flare and other blockchains—without relying on wrapped tokens or traditional liquidity cross-chain bridges.
USD₮0 has shown strong development momentum since its launch on January 2025:
Since its launch, over 2 billion USD₮0 in trading volume has been bridged across chains.
USD₮0 has launched on some of the most widely adopted blockchains, including Arbitrum, Optimism, Ink, Unichain, Sei, Berachain, MegaETH, and now Flare has also joined the support.
Backed by Tether, LayerZero, and Stargate, USD₮0 sets a new standard for cross-chain stablecoin liquidity.
According to the latest report from Chaos Labs, USD₮0 is described as a technological breakthrough in stablecoin design, providing a range of benefits to users, blockchain ecosystems, and exchanges.
What are the benefits of USD₮0 for Flare?
USD₮0 is not just another variant of stablecoin; it is the foundational cross-chain liquidity standard for USDT, unlocking new opportunities for users, builders, and the broader Flare ecosystem.
USD₮0 co-founder Lorenzo R said:
USD₮0 helps accelerate the adoption of real-world stablecoins on Flare by addressing one of the industry's biggest challenges: fragmented usability.
By achieving native, cross-chain liquidity, USD₮0 brings seamless interoperability to the Flare ecosystem. Combined with Flare's zero gas fee trading model, this integration creates a frictionless user experience, lowering the barrier to daily stablecoin usage.
Key features of USD₮0 on Flare include:
Competitive yield: Through Flare's USD₮0 Boost program, earn industry-leading yields of up to 30% APY (paid in rFLR) from institutional-level stablecoin liquidity.
Interoperability powered by OFT: Thanks to LayerZero's OFT technology, USD₮0 can be seamlessly transferred between supported chains without wrapping or third-party bridges, facilitating more efficient capital inflow into Flare's DeFi protocols.
Faster transfer speeds: Transferring USD₮0 between chains (e.g., Flare and Arbitrum) takes only 30 seconds to a few minutes—much faster than traditional bridging solutions.
Zero gas fees on Flare: Sending USD₮0 internally on Flare incurs no gas fees. This means frictionless remittances, cost-effective transfers, and other benefits.
The foundation of XRP DeFi
Perhaps most importantly for Flare users, USD₮0 provides a native stablecoin for FXRP and soon will offer trading pair options for liquidity-staked XRP users, contributing to the capital base of Flare's XRP DeFi stack.
Flare co-founder and CEO Hugo Philion stated:
To enable the DeFi ecosystem of Flare to thrive and lay the foundation for the XRP DeFi movement, a critical element is high liquidity and globally accessible stablecoins.
USD₮0 provides these elements, achieving seamless transfers in and out of Flare while unifying cross-chain liquidity to drive growth and capital efficiency.
As Flare expands the utility of non-smart contract assets through FAssets, stablecoin liquidity will become a key foundation for lending, trading, and liquidity provision across the ecosystem.
How does USD₮0 operate on Flare?
Unlike traditional multi-chain stablecoins—where each network maintains an isolated version—USD₮0 achieves continuously interoperable cross-chain liquidity.
Mint: All USD₮0 minted on the target chain is 1:1 pegged to USDT locked on Ethereum, meaning USD₮0 is always fully redeemable.
Transfer: USD₮0 can be natively transferred between supported blockchains without relying on third-party bridges or fragmented liquidity pools.
Redeem: To unlock USDT, users simply redeem their USD₮0 and retrieve the original asset on Ethereum (or another source chain).
Note: Step 1 is hidden from end users. Most users will either acquire USD₮0 directly through the DEX on Flare or the upcoming CEX, or use the USD₮0 transfer entry site to bridge from Ethereum (or other supported chains).
Next steps
Flare users can now start leveraging USD₮0 for faster, cheaper, and seamless cross-chain stablecoin transfers:
Migrate bridged USDT to USD₮0: Use the migration tool in Flare Portal
Stargate will eventually disable USDT transfers on its front end, but USDT will always be redeemable for USD₮0.
Flare dApp is planning to migrate USDT liquidity pools to USD₮0.
If users do not migrate to USD₮0, holders of bridged USDT will need to use Hydra to bridge back.
Try zero gas fee USD₮0 transfers on Flare at https://gasl.es: This feature will soon be integrated into Flare Portal.
Earn yield on USD₮0 on Flare: Earn yield in pools running on SparkDEX and Kinetic (Enosys and Blazeswap launching soon)
$FLR surged 18%
Flare's official X account noted that within two hours of USD₮0 launching on Flare, several milestones were achieved, gaining substantial user support.
Bridged 2.1 million USDT
Migrated 424,000 USDT
2 million USD₮0 locked in Kinetic
There is a pool of 60,000 USD₮0 on SparkDEX
Additionally, OKX market data shows that Flare's native token $FLR surged to a high of $0.1998 last night, with an hourly increase of up to 18%, currently reported at $0.1812, a nearly 24-hour increase of 9.6%.
