Tether – the company behind the world’s largest stablecoin – has now launched its flagship Tether token (USDT) at Polygon. This will extend the usefulness of Tether to the thousands of dapps running on the blockchain.
- Polygon is a layer 2 scaling solution for the Ethereum network. It allows for faster transactions with lower fees by using technologies such as Optimistic Rollup and ZK Rollup.
- More than 19,000 dapps run on the network – more than 3000 in October – created by over 8000 developer teams.
- Tether issues a variety of tokens backed by assets with relatively “stable” value, such as US Treasury bills and commercial paper. These assets are used to hold its token at a relatively stable price.
- Tether’s USDT token is worth one dollar each. Meanwhile, Tether’s recently announced MXNT is pegged to the Mexican Peso.
- Such stable assets are helpful in trading the crypto market faster and mitigating the risks caused by market volatility in the DeFi ecosystem.
- With the launch of Polygon, USDT is now available on 11 blockchains. These include the standard ledger protocols of Ethereum, Solana, Avalanche, Algorand, Tron, Omni, EOS, Liquid Network, Kusama and Bitcoin Cash.
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“We are excited to launch USD on Polygon, which gives our community access to the most liquid, stable and reliable stablecoin in the digital token space,” said Paolo Ardoino, CTO of Tether.
- USDT experienced some volatility recently following stablecoin panic following the collapse of TeraUSD (UST). UST was an algorithmic stablecoin backed by a volatile cryptocurrency, rather than a direct dollar.
- Tether’s peg quickly recovered, however, and the company reassured holders that the reserves were fully backed in a report last week.
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