Tether has selected the Arbitrum Layer 2 protocol to optimize its cross-chain operations within the new initiative called Legacy Mesh. This move follows the introduction of USDT0, a new token intended to enhance cross-chain transfers without the need for token wrapping or blockchain bridges. USDT0 is pegged to the flagship stablecoin USDT, which currently dominates the stablecoin market with a market capitalization of $141 billion. Arbitrum will serve as a hub connecting various networks, including Ethereum, Tron, Ton, Ink, and Berachain, to a cohesive USDT0 network. This development is seen as a significant step toward improving liquidity and market access for users and developers across different blockchains. Tether's commitment to cross-chain interoperability comes amid robust financial performance, reporting yearly profits exceeding $13 billion while navigating scrutiny from regulators concerning stablecoin reserve management.

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