Tether (USDT), the top stablecoin with a market valuation of more than R1.1 trillion, said today that it will deploy its USDT token on the Tezos network.
Tether will be launched on the Tezos Blockchain
Tether Operations Limited, the company behind the industry-leading USDT stablecoin, announced today that its flagship digital asset is scheduled to become live on the Tezos network.
The news was revealed at the Money 20/20 event in Amsterdam, the Netherlands. Top professionals and companies from the “global monetary system” attended the conference to discuss major trends, innovations, and the current situation of the fintech industry.
According to the company, the total number of blockchains supported by its USDT stablecoin is now 12. It’s worth noting that Tether only recently confirmed the introduction of USDT on the Polygon network.
Ethereum, Solana, Avalanche, Polygon, Algorand, Tron, Omni, EOS, Liquid Network, Kusama, and Bitcoin Cash’s Standard Ledger Protocol are among the blockchains on which USDT is already available.
Tether’s CTO, Paolo Ardoino, commented:
“We’re excited to launch USDT on Tezos, offering its growing and vibrant community access to the most liquid, stable, and trusted stablecoin in the digital token space.”
The introduction of USDT on Tezos is a significant step forward for the latter, as it marks the arrival of one of the most liquid digital assets into its ecosystem. With the debut of USDT on Tezos, all protocols built on its blockchain will be able to use the stablecoin for staking, yield farming, lending, and other uses.
The total value locked (TVL) of digital assets in Tezos-based DeFi apps is currently just over R556 million. USDT’s arrival into the ecosystem is expected to deliver a much-needed boost to the Tezos DeFi space and assist in growing its TVL.
According to Alessandro de Carli, creator of Papers, a business that specializes in developing blockchain-based mobile-first applications:
“The launch of USDT on Tezos will undoubtedly unlock new DeFi products and I expect the impact on volume growth of the Tezos DeFi ecosystem to be remarkable.”
The impact of the announcement was also reflected in the price of XTZ earlier today. Tezos’ native token, XTZ, increased by more than 8% after Tether’s plans to release USDT on Tezos were made public.
Although USDT is available on 12 other blockchains, it is most often used on the Ethereum and Tron blockchains.
Tether’s USDT Reserves are still the subject of speculation
Although USDT is the most valuable stablecoin by the reported market cap, its value has plummeted since the collapse of Luna’s UST stablecoin. A substantial quantity of USDT was redeemed shortly after UST’s liquidation due to worries about its reserves and collateral.
However, the company has said numerous times that all of its USDT tokens are backed 1:1 with USD. According to crypto.news, the stablecoin issuer holds some of its reserves in a Bahamas-based bank.
