Kraken adds USDT0 deposits and withdrawals on Stellar

Kraken now supports deposits and withdrawals of USDT0 on the Stellar network. The feature went live on September 4, 2026, and gives Kraken users another network option for moving USDT0.

The practical point is speed and cost. Kraken says Stellar transactions settle in roughly five seconds, with typical network fees costing only a fraction of a cent. For a stablecoin transfer, that makes Stellar different from networks where the fee can become part of the decision.

USDT0 is not a separate dollar stablecoin in the usual sense. Kraken describes it as an omnichain version of Tether's USDT built on LayerZero's Omnichain Fungible Token standard. The model is lock-and-mint: USDT is locked on Ethereum, and an equivalent amount of USDT0 is minted on the destination network. Kraken says each USDT0 remains backed 1:1 by USDT and can be redeemed 1:1 for USDT.

Users still need to pay attention to the network selected at deposit time. Kraken warns that tokens sent through unsupported networks will be lost. App and Instant Buy access may also depend on liquidity conditions, and geographic restrictions may apply.

There is also the standard stablecoin caveat. Kraken notes that the term "stablecoin" does not guarantee that an asset will keep a stable value on secondary markets, or that any reserve will be sufficient for all redemptions.

For KrakenReferral readers, this is a network update rather than a trading thesis. USDT0 on Stellar may make funding and withdrawals cheaper or faster for eligible users, but the deposit network, liquidity status and regional availability still need to be checked before moving funds.

Sources: Kraken official blog, https://blog.kraken.com/product/new-features/usdt0-on-stellar-deposits-and-withdrawals-now-available.