The largest stablecoin by market cap, Tether, will soon launch its token USDT on the Tezos network. After this launch, Tether would be available on 12 blockchain networks, including BTC, ETH, BNB, TRX, and many more. Launching their token on multiple blockchains makes it easy to adopt and integrate. It also enables the transfer of assets between multiple networks allowing for more flexibility. Cross blockchain compatibility also means there is no need for an intermediary to communicate with each other.
USDT’s launch on Tezos
The company’s Chief Technology Officer, Paolo Ardoino, announced that they are excited to launch USDT on Tezos and offer them the most stable, liquid, and trusted stablecoin. Paolo is also optimistic that it will aid USDT’s long-term growth. Their launch on the Tezos network will enable many DeFi products and increase volume growth. It also marks another step forward towards building interoperability as Tether keeps launching on multiple blockchain networks.
About Tether
USDT is a stablecoin created by Tether, a Hong Kong-based business that mimics the price of the US dollar. The USDT is pegged to the dollar by keeping a reserve of fiduciary deposits, commercial paper, cash, treasury bills, and reserve repo notes with a USD value equal to the number of USDT in circulation.
However, there have been a number of disagreements over the years concerning the authenticity of Tether’s statements about their USD reserves, causing USDT’s price to drop as low as $0.88 at one point in its existence. Many people have expressed worry regarding the fact that Tether’s reserves have never been thoroughly examined by a third party. And the skepticism only got larger after the huge crash of the Luna UST crash and Tether losing a $10 billion market cap in a few days.
At present, the total market cap of Tether is approximately $72.4 billion and is at number 3 in market rank.
The New York State has recently issued guidelines on stablecoins. And even though Tether doesn’t fall under the jurisdiction, we can soon expect the stablecoin market to become a lot safer with strict laws.
What are your thoughts as Tether plans to launch USDT on Tezos soon? And do you think USDT’s interoperability is a major advantage? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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