Tether invests in t-0 network to back USDT-powered cross-border payments

Tether says it has made a strategic investment in t-0 network, pitching the platform as a way for licensed financial institutions to move money across borders with near-instant settlement and minimal fees—using USDT as the settlement layer. The announcement, published Feb. 6, 2026, frames the deal as part of Tether’s broader push to turn USDT’s global liquidity into “real-world” payment infrastructure.

Tether describes t-0 network as a proprietary payments solution that connects banks and fintechs through a single API, letting each side of a transaction pay or receive funds in local currency while the network’s global ledger matches flows and settles net balances at each partner’s chosen currency. The company says the model is designed to reduce FX exposure, lower capital requirements, and remove friction associated with traditional correspondent banking.

How t-0 is supposed to work

The pitch is: make international payments feel local. Instead of sending money through a chain of intermediaries, t-0 records and matches transactions across participating institutions, then settles only what’s owed between partners—while relying on stablecoins as the “core settlement infrastructure.”

Tether emphasizes the network’s positioning as non-custodial infrastructure—a “trusted” layer for secure on-chain movement of funds between licensed partners—rather than a consumer wallet product.

What they’re saying

Tether CEO Paolo Ardoino said the investment supports infrastructure that’s “fast, transparent, and globally scalable,” and argued t-0 tackles cross-border complexity through “real-time settlement, cost efficiency, FX transparency, and global reach.”

t-0 network CEO James Brownlee framed the goal as removing friction “between developed and emerging markets,” so institutions can connect and transact “on equal terms.”

Why it matters for crypto

• USDT keeps moving up the stack. This isn’t about trading pairs—it’s Tether positioning USDT as institutional settlement plumbing for fiat-to-fiat payments.
• Banks want stablecoin benefits without stablecoin mess. The “single API,” net settlement, and “licensed partners” framing is aimed at institutions that want speed and transparency without building crypto-native ops from scratch.
• Cross-border payments is a stablecoin battleground. If networks like this work, they turn stablecoins from “crypto liquidity” into a competitive rail against slower, costlier international transfer models.

What to watch next

• Who joins the network. t-0 is described as an institutional network—real traction shows up in named licensed partners and corridors.
• How “non-custodial” is implemented in practice. The announcement stresses non-custodial infrastructure; details on operational flow and controls will matter for adoption.
• Whether it delivers on FX and cost claims at scale. t-0’s pitch centers on reducing FX exposure and minimizing fees; real-world performance will decide whether it’s a niche rail or a serious alternative.

Source: Tether — “Tether Announces Investment in t-0 Network to Support USD₮-Powered Payments System”