TLDR
- Tether launches dual initiatives with Zengo wallet investment and Legacy Mesh system
- New bridge-free technology aims to unify $138 billion in USDT across networks
- Zengo’s MPC technology eliminates traditional seed phrase risks
- Legacy Mesh connects six major blockchain networks through Arbitrum hub
- Cross-chain system currently live for basic transfers with expanded features planned
Tether, the organization behind the USDT stablecoin, has revealed two major developments aimed at reshaping how users interact with digital assets across different blockchain networks. The company announced an investment in crypto wallet provider Zengo while simultaneously launching a new cross-chain system called Legacy Mesh.
The partnership with Zengo marks Tether’s entry into the self-custodial wallet space, where users maintain direct control over their digital assets. Zengo’s platform currently operates across ten blockchain networks, including popular chains such as Bitcoin, Ethereum, and Base.
One of Zengo’s main features is its innovative approach to wallet security. Rather than relying on traditional seed phrases, which can be lost or stolen, the platform employs MPC (multi-party computation) technology. This system distributes security keys across multiple parties, reducing the risk of single-point failures.
Tether CEO Paolo Ardoino explained the strategic importance of the investment. “Our users need reliable tools to manage their digital assets,” he said. “The investment in Zengo demonstrates our commitment to making blockchain technology more accessible while maintaining high security standards.”
The wallet platform includes tools designed for both newcomers and experienced cryptocurrency users. These features focus on making cross-chain transactions more straightforward, addressing a common pain point in the crypto ecosystem.
Zengo’s CEO Ouriel Ohayon highlighted the scale of potential impact, noting that USDT currently serves more than 400 million users worldwide. “By partnering with Tether, we’re making self-custody simpler and more secure for a global user base,” Ohayon stated.
Parallel to the Zengo investment, Tether introduced its Legacy Mesh system, a new infrastructure connecting multiple blockchain networks. The system integrates USDT0 and existing USDT deployments across TRON, Ton, Ethereum, Arbitrum, Ink, and Berachain.
Legacy Mesh System
The Legacy Mesh represents a departure from traditional cross-chain solutions by eliminating the need for third-party bridges. These bridges have historically created problems with liquidity fragmentation and complicated token management processes.
At the center of the Legacy Mesh system, Arbitrum serves as a hub chain connecting various USDT networks. This architecture allows for more efficient liquidity pool access and native USDT0 interoperability across different blockchains.
The system utilizes liquidity pools on Ethereum, TRON, and TON to enable secure transfers through LayerZero messaging protocols. According to Tether’s announcement, this integration brings approximately 138 billion dollars worth of USDT into a unified framework, representing 98% of all USDT in circulation.
The rollout of Legacy Mesh follows Tether’s earlier launch of USDT0, announced on January 16 in collaboration with LayerZero. USDT0 operates using the Omnichain Fungible Token standard, enabling cross-chain transfers without wrapped assets or intermediate bridges.
Currently, users can perform transfers within the Legacy Mesh system and to Arbitrum. Tether plans to expand functionality to include multihop transfers from Legacy Mesh chains to USDT0 networks beyond Arbitrum, including Ink and Berachain.
For everyday users, these developments translate to simpler methods for moving USDT between different blockchain networks. The system particularly benefits those needing to transfer funds between established networks like Ethereum and newer platforms like TON.
Technical implementation of the Legacy Mesh relies on a decentralized network of oracles and relayers to maintain security across different blockchains. This infrastructure replaces the traditional reliance on centralized bridge solutions.
As of February 2025, the basic transfer functionality within Legacy Mesh and to Arbitrum is fully operational. Tether has indicated that additional features will be released in phases over the coming months.
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