USDT to Overcome Its Biggest Problem With Chainlink, Hyperlane, and Velodrome

USDT, the world’s largest stablecoin, has long faced two major problems: liquidity fragmentation and scalability across multiple blockchains. A new solution, OpenUSDT (oUSDT), aims to fix this. 

Built through a partnership between Chainlink, Hyperlane, and Velodrome, OpenUSDT is an interoperable version of USDT designed for the OP Superchain ecosystem. The OP Superchain consists of 30+ live blockchains with dozens more in development.

With Hyperlane’s cross-chain framework and Chainlink’s security infrastructure, OpenUSDT can move across different Superchain networks, solving key challenges that have restricted stablecoin adoption.

What Are USDT’s Biggest Challenges?

USDT is the most widely used stablecoin, with a market capitalization of over $141 billion. However, as the crypto industry grows, USDT faces two key limitations:

Liquidity Fragmentation

• Every blockchain without native USDT must deploy its own bridged version, creating siloed liquidity.
• This results in multiple incompatible versions of USDT across chains.
• Trading, lending, and borrowing become inefficient due to lack of liquidity consolidation.

Scaling to Many Chains

• Stablecoins like USDT struggle to seamlessly integrate across all these chains.
• Most solutions involve expensive third-party bridging services that charge fees for deployment.

OpenUSDT directly addresses these issues by making USDT natively interoperable across Superchain networks.

What Is OpenUSDT and How Does It Work?

OpenUSDT is a cross-chain version of USDT designed to work seamlessly across Superchain networks. It is built on Hyperlane’s interoperability framework and secured using Chainlink’s Cross-Chain Interoperability Protocol (CCIP).

Key Features of OpenUSDT

• Interoperability – Works across all Superchain networks without needing custom bridge deployments.

• Permissionless Expansion – Any new Superchain network can integrate OpenUSDT without requiring approval.

• Seamless Upgrades – Can transition to native USDT minting on each chain as needed.

• Enhanced Security – Secured by Chainlink CCIP and Hyperlane’s Modular Security framework.

• Low-Cost & Efficient – Eliminates third-party bridge fees, making cross-chain transactions cheaper and faster.

How OpenUSDT Solves USDT’s Liquidity Problem

Currently, only Celo within the OP Superchain has natively minted USDT. OpenUSDT solves liquidity fragmentation by using Celo as the minting hub:

1. Native USDT on Celo is locked to mint OpenUSDT on other Superchain networks.
2. Hyperlane Warp Routes connect Celo to other Superchain blockchains, allowing frictionless transfers.
3. Chainlink CCIP secures transactions on chains where CCIP is available, particularly for large transfers ($250K+).

This unified liquidity model ensures that all Superchain networks share the same USDT liquidity, preventing fragmentation.

Where Is OpenUSDT Available?

At launch, OpenUSDT is available on:

• Celo (native USDT hub)
• Optimism
• Base
• Soneium
• Unichain
• Mode
• Lisk
• Fraxtal

More Superchain networks will be added over time as the ecosystem expands.

Velodrome: The Primary Trading Hub for OpenUSDT

To ensure strong liquidity for OpenUSDT, Velodrome has been chosen as its primary trading venue. Velodrome is one of the largest decentralized exchanges (DEXs) in the OP Superchain ecosystem, making it the ideal place to trade OpenUSDT.

Per reports, by launching OpenUSDT liquidity pools on Velodrome, traders and DeFi users can easily swap, lend, and borrow OpenUSDT across multiple Superchain networks without fragmentation.

OpenUSDT is reportedly a step toward Ethereum becoming the leading global payment and DeFi settlement layer.

According to Celo Co-Founder Rene Reinsberg, OpenUSDT will help Ethereum achieve:

• Lower transaction costs (sub-cent gas fees)
• Stablecoin-based gas payments
• Seamless on/off ramps for fiat conversion
• Direct USDT integration across all Superchain rollups

By enabling free, permissionless access to USDT, OpenUSDT aligns with the Superchain’s interoperability goals while ensuring long-term stability and adoption.

Hyperlane: The Key to OpenUSDT’s Cross-Chain Expansion

OpenUSDT expanding to new blockchains is made possible by Hyperlane’s permissionless deployment model, which allows anyone to integrate OpenUSDT into new Superchain networks.

Why Hyperlane Matters for OpenUSDT

• Modular Security: Allows integration of future security mechanisms, including Chainlink CCIP and native Superchain interoperability.

• Future-Proofing: OpenUSDT can seamlessly transition to native USDT minting whenever Tether expands to new chains.

• ERC-7802 Compatibility: OpenUSDT is designed to work with Ethereum’s new cross-chain standard, ensuring long-term scalability.

The Future of USDT: A Unified Cross-Chain Stablecoin

For years, stablecoin providers have struggled to create a single, unified version of USDT that works across multiple chains without fragmentation. OpenUSDT could be the missing piece.

For everyday DeFi users, OpenUSDT offers several practical benefits:

• Simplified Experience: One consistent USDT token across multiple chains
• Reduced Costs: No need for multiple bridge transactions
• Enhanced Security: Chainlink CCIP securing high-value transfers
• Broader Access: Available on more chains than traditional bridged tokens

Celo Co-Founder and Foundation President Rene Reinsberg emphasized the strategic importance: 

“OpenUSDT is a future-proof product accelerating the accessibility and adoption of Tether’s USDT stablecoin within the Superchain ecosystem; helping Ethereum become the leading settlement layer for global payments and decentralized finance.”