Friday, June 2, 2023

Tether launches its USDT stablecoin on the Polygon network

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Tether, the world’s largest stablecoin company, has launched its USDT stablecoin on the Polygon network bringing its utility to the over 19,000 decentralized applications (dApps) running on Polygon.

Polygon, a layer 2 (L2) scaling solution for the Ethereum network, allows cheaper and faster transaction costs using ZK rollups and optimistic rollups technologies. Its dapps have been created by more than 8k developer teams from 3k in October.

Tether has a variety of tokens backed by assets with a more “stable” value like the commercial paper and US treasury bills. These assets keep Tether tokens pegged to one dollar each. Besides, Tether had recently announced a new stablecoin, MXNT, launch that will be pegged on Mexican Peso.

Advantages of stable assets

Stable assets are very important as they help to increase the rate of trade in the market as well as cubbing all the risks involved in the DeFi ecosystem in terms of market volatility.

Polygon is now the 11th blockchain to host USDT. Other blockchains that host USDT are; Solana, Ethereum, Avalanche, Omni, Kusama, Algorand, EOS, Bitcoin Cash’s Standard Ledger Protocol, and Tron.

Paolo Ardoino, Tether CTO said:

“We’re excited to launch USD₮ on Polygon, offering its community access to the most liquid, stable, and trusted stablecoin in the digital token space.” 

Notably, USDT had faced some turbulence after TerraUSD (UST) collapsed. This could not be dealt with since UST was an algorithmic stablecoin that was backed by unstable crypto instead of direct dollars.

However, Tether’s recovered its peg quickly and reassured its holders that their reserves were fully backed.


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