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- USDT0 has launched on $IOTA Rebased, connecting the network to $USDT liquidity through an omnichain transfer model.
- $IOTA Rebased operates on a delegated proof-of-stake and offers Layer 1 smart contracts for on-chain lending and trading.
$IOTA has expanded its DeFi infrastructure with the arrival of USDT0 on $IOTA Rebased on March 21. The rollout connects its smart-contract network to an omnichain stablecoin framework. It is built to move Tether-linked liquidity across networks without relying on separate token pools on each chain. $IOTA Rebased has been live since May 2025, as we earlier covered. USDT0 is a unified liquidity network for $USDT across supported ecosystems.
The update adds stablecoin access to a network that was redesigned for on-chain applications. $IOTA Rebased introduced delegated proof-of-stake, Layer 1 smart contracts, and a Move-based architecture. That change gave $IOTA a base for trading, lending, and other financial tools on the main network. LayerZero documentation also supports $IOTA L1, which is relevant because USDT0 relies on the Omnichain Fungible Token standard and LayerZero messaging for cross-chain transfers.
#USDT0 is a major step toward unified stablecoin liquidity.
Instead of isolated $USDT pools on each chain, USDT0 improves interoperability — making it easier to move liquidity across ecosystems with fewer frictions.
Bringing USDT0 to #$IOTA is significant:
• Better access to… https://t.co/FRVkThYxMa— B effect.iota 🦋🐝 (@karlaxelm) March 20, 2026
The USDT0 system is a lock-and-mint model with a unified supply across chains. The design is meant to avoid the fragmented setup that often leaves stablecoin liquidity split between isolated deployments. Solutions such as bridges and wrapped versions of the same asset are either costly, slow, or less secure.
$IOTA’s Growing DeFi Base
Access to stablecoins comes as $IOTA’s DeFi market embarks on a new growth path following the Rebased migration. DeFiLlama currently lists about $7.28 million in total value locked on the network, suggesting room for growth, especially in sectors that rely on stable assets for trading pairs, collateral, and payments. A cross-chain stablecoin route can help new protocols launch by providing easier access to liquidity, rather than building separate reserves from the start.
Previously, we covered $IOTA’s 2026 strategy, which places government and institutional adoption at the center of its growth plans. The TWIN system is already active in Kenya and has participated in freight trials in the United Kingdom as part of its push for wider real-world deployment.
Circulation data for Tether’s tokens is updated regularly on its transparency page. Data from mid-March 2026 placed $USDT market capitalization at roughly $184 billion. USDT0 has been positioning itself as a transport layer for that liquidity, with more than $63 billion moved through the network in its first year. That gives $IOTA access to a stablecoin network with activity across several chains.
This month, CNF reported that $IOTA introduced its “Digital Highway,” a system to replace paper-based trade records with verifiable digital data shared securely across borders. The platform is designed to connect national trade systems and enable tokenized goods through verified on-chain records.