Tether Backs t-0 Network in Push to Replace SWIFT with USDT Rails

Tether has executed a strategic investment in t-0 network, a move designed to embed USDT directly into the backend of traditional banking. The undisclosed deal funds a settlement layer where licensed banks and fintechs can conduct fiat-to-fiat transfers using USDT as the intermediate rail, effectively bypassing legacy correspondent banking networks.

The Mechanism: “Shadow SWIFT”

While the front end resembles a standard bank transfer, users send and receive local currency. The t-0 infrastructure utilizes USDT for the settlement leg. Unlike the real-time gross settlement (RTGS) models used by central banks, t-0 employs a non-custodial net-settlement model. This allows institutions to batch transactions and settle net differences on-chain, compressing days of SWIFT latency into seconds.

Paolo Ardoino, Tether’s CEO, framed the investment as an attack on TradFi inefficiencies:

The t-0 network directly addresses the complexity of international payments by combining real-time settlement, cost efficiency, FX transparency, and global reach.

Institutional Plumbing

This is not a retail wallet play. The t-0 network, led by CEO James Brownlee, is strictly B2B infrastructure. By focusing on licensed financial institutions, Tether is leveraging its $185.6 billion market cap to solve the liquidity fragmentation that plagues cross-border payments. The “t-0” branding, a nod to the “T+0” (instant) settlement standard, signals an intent to outpace the T+1 cycles currently being adopted by major stock exchanges.

For Tether, the play diversifies revenue beyond the high-yield Treasury bills backing its reserves. By locking USDT into the operational flows of fintechs, the stablecoin issuer reduces its reliance on crypto exchange volume and positions itself as a critical vendor for global trade settlement.