Tether Launched New USDT Token on Tezos Blockchain

2022-06-21, 09:07

Stablecoins creators, Tether, have released their foremost token, the USDT on another blockchain, Tezos, an upgradeable LPoS platform. The largest stablecoin operators announced their newest platform addition on the 9th of June. This rounds the number of platforms supporting Tether to a full dozen.

From the beginning of its existence, Tether’s goal has been to provide a liquid, trustworthy and stable token in the marketplace. So far, the operation has done this very well building its market cap to about 80 billion US dollars, around 26% more than USDC, its largest competitor.

The stablecoin is currently supported on 11 other blockchain networks apart from Tezos namely; SLP of Bitcoin Cash, Kusama, Ethereum, Solana, Algorand, Tron, EOS, Omni Layer, Liquid, Avalanche, and most recently Polygon.
Tether is also spreading its reach across borders by launching other stablecoins like the EURt, CNHt, MXNt and others.

Read on to get the full story.

Keywords; Tether USDT, Tezos, Stablecoins, Tether launch, Defi products, Tezos USDT.

The News in Full.

On the 9th of June 2022, Tether officially announced the extension of its foremost stablecoin, USDT, to the rapidly growing Tezos Blockchain network. The Tether token is now available on Tezos' Layer-1 blockchain. Tezos users can now easily on-ramp and off-ramp with the introduction of USDT.

Paolo Ardoino, the Chief Technology Officer of the stablecoin issuer expressed his excitement at being able to collaborate with Tezos in this way. According to him, providing the LPoS blockchain’s growing ecosystem with USDT's liquidity, trustworthiness and stability is important to its long-term growth.

Per a Tether spokesperson, Tether’s tokens are more than an investment, they are a means of digital liquidity for trading, mitigating market instability, and a safe repository of value. They allow their holders to move assets freely across the digital space and can be redeemed cost-efficiently and easily.

Source: Crypto Academy.

What is Tezos Blockchain?

Tezos is a decentralized evolutionary blockchain platform that deploys peer-to-peer interactions and smart contracts. The layer-1 blockchain was built to embrace upgrades in its system that would require other similar blockchains to take a hard fork. So far Tezos has experienced 9 such upgrades without experiencing one hard fork.

The BlockChain runs on Liquid Proof of Stake (LPoS) and is a favorite among decentralized apps (Dapps) and other web3-related businesses. As of May 2022, the decentralized finance platform had a 1.86 billion market cap.

Alessandro Carli, a founder of Papers, believes the integration of USDT into the Tezos system is a positive thing. He believes it would make way for onboarding more De-fi products and companies and positively impact Tezos' growth volume.

Other Platforms Supporting Tether Stablecoins.

As for Tether, this movement is another step in its inexorable journey of providing liquidity for the global digital assets space. So far, the Tezos launch makes the 12th platform on which USDT functions. Here is a list of the others:

1. Solana
2. EOS integrated on May 31, 2019
3. Algorand on Feb 10, 2020
4. Omni Layer in October 2014
5. Kusama (Polkadot) on April 13, 2022
6. SLP of Bitcoin Cash
7. Liquid in July 2019
8. Avalanche in November 2021
9. Tron
10. Ethereum
11. Polygon on May 27th, 2022, and now,
12. Tezos.

The Largest stablecoins provider with a market capitalization of $80 billion has also recently added a new stablecoin to its growing repertoire of tokens. This was announced on May 26th, a new token pegged to the Mexican Peso 1:1, the 4th stablecoins Tether has launched.

Source: The Verge.

Tether's Reserve Backing Controversy.

Interestingly, all these moves are coming after the recent controversy surrounding Tethers reserves. In 2021 the platform paid a fine of $41 million to settle a longstanding legal dispute over allegations that its tokens are not fully backed with fiat as it claims.

Although Tether denied the allegations, both the government and investors continue to demand evidence of its reserves requesting quarterly reports. Especially when Tether USD temporarily fell from its dollar peg during the Terra crash which impacted the entire cryptoverse in mid-May.

However, during that period Tether redeemed all its customers' withdrawals of close to $3 billion without stress. A few days later, it was firmly trading on its peg once more.

The stablecoin continues to consolidate its place as the largest stablecoin by continuously expanding. Just recently, Tether added a new stablecoin to its growing list, the MXNT linked to the mexican peso joining the other tokens on their list. It is rapidly spreading its efficient, cost-effective, and time-saving tentacles across the digital assets space.

Let's wrap things up

Tether's advance across the cryptoverse continues inexorably with the addition of Tezos to the list of Blockchains its stablecoin, USDT is available on.

This latest move is in keeping with its goal of providing blockchain ecosystems with Liquid, stable and trustworthy tokens. Despite the controversy surrounding stablecoins at the moment, Tether continues to target growing Layer 2 networks and help them thrive.

Author: Gate.io Observer: M. Olatunji
Disclaimer:
* This article represents only the views of the observers and does not constitute any investment suggestions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.