Security is non‑negotiable for stablecoins. With USDT0, the goal is to deliver omnichain liquidity without sacrificing trust or transparency.

By integrating canonical supply logic, dual-layer verification, and an array of additional security mechanisms, USDT0 provides a robust and auditable system for moving USDT across chains while ensuring that every token retains full, provable backing.

USDT0’s multi-layered approach to security ensures:

• Transparent transfers that are verified and tamper‑resistant

• Guaranteed collateralization, so the total USDT0 supply always matches USDT reserves

• Native-level certainty, enabling composable DeFi and enterprise-grade integrations

The result is a system that delivers the accessibility of omnichain movement while enforcing the kind of supply integrity users and protocols can trust.

Let’s take a closer look at how it all works.

At the core of USDT0’s trust model is a dedicated smart contract on Ethereum that holds the entire collateral backing for the token across all chains. This reserve (or Lockbox) contract acts as the canonical source of collateral for USDT0’s entire omnichain ecosystem, regardless of where USDT0 tokens are minted, used or transferred.

USDT0’s canonical reserve architecture eliminates the need for token-specific liquidity pools or wrapped supply on multiple chains. Instead of depending on custodians or bridged vaults, USDT0 anchors its total supply to a single, public onchain contract.

This design gives users and protocols a transparent, verifiable reference point, meaning anyone can inspect the reserve at any time to confirm the backing of USDT0. By locking collateral at the source and avoiding multiple wrapped versions across chains, USDT0 ensures that the circulating supply is always solvent, simple, and auditable.

USDT0’s omnichain functionality relies on a secure and deterministic mint/burn system powered by LayerZero’s OFT (Omnichain Fungible Token) standard. Rather than relying on manual bridges or escrow contracts, USDT0 uses OFT to move tokens between chains by burning them on the origin and minting them on the destination.

This mechanism ensures that token supply is never duplicated, and messages are sent through LayerZero’s battle-tested messaging layer and only executed once approved by multiple decentralized verifiers. Each burn-mint event is specific, traceable, and tamper-proof, which not only reduces attack surfaces but also aligns with native token standards on each supported chain.

To prevent unauthorized transfers or malicious messages from ever triggering a mint, USDT0 uses two independent verification networks to validate every cross-chain transfer. These Dual DVNs are operated by separate oracle providers and must independently agree that a message is valid before a mint can occur.

Each DVN reads the metadata of the message (including proof of burn from the source chain) and signs off only if everything aligns with the expected logic and source transaction. This dual-verification model removes reliance on any single oracle or system actor, making it far more resilient to failure, latency, or attack. Even if one DVN is compromised or temporarily offline, USDT0 transfers remain secure thanks to the requirement for multiple independent approvals.

To ensure that circulating supply across chains is always consistent with the locked Ethereum reserve, Chaos Labs has deployed a risk monitoring system that continuously audits the state of the USDT0 ecosystem. This system tracks both the balance of locked USDT on Ethereum and the aggregate supply of USDT0 minted on all supported chains.

While a simple proof-of-reserve oracle is already deployed, Chaos Labs plans to roll out a more advanced feed that writes the total supply data back to every L2. This would allow protocols to include collateralization checks directly in smart contracts, such as verifying that the total minted supply remains less than or equal to the locked amount before proceeding with a transaction.

By adding post-crime assurance to pre-crime prevention, Chaos Labs is adding an entirely new layer of security for developers and users using USDT0.

As stablecoins become the foundation of a new era of digital finance, USDT0 is setting new standards for both omnichain accessibility and security.

Every cross-chain transfer is subject to rigorous verification and automated enforcement mechanisms to ensure that 100% of the circulating supply is always backed by locked USDT on Ethereum. These protections work quietly behind the scenes to reduce risk and eliminate failure-prone infrastructure like wrapped tokens and manual custodial bridges.

And while USDT0 is already very secure today, the teams behind it are constantly working on new ways to  improve, adapt, and strengthen existing security mechanisms. Ongoing work by partners like Chaos Labs and LayerZero includes improvements to system-wide observability and simulation-based validation tools. These upgrades will make USDT0 even more transparent and intelligent in how it manages risk.

But don’t take our word for it. USDT0's smart contracts have undergone multiple audits, and we maintain a bug bounty program on Immunefi with rewards of up to $6,000,000 for critical vulnerabilities. Because when it comes to stablecoins, trust shouldn’t be assumed — it should be provable.

Ready to build with it? Learn more at usdt0.to.