Tether, known as USDT, will be the first stablecoin to integrate into the Polkadot and Kusama blockchain networks, reported the company responsible for the stable currency.
The development company of tether (USDT), Tether Limited, announced that USDT will be the first stablecoin in the world to join the parachains de Polkadot and the network Kusama, when this innovation is ready to hit the market. According to the company's published statement, the integration of tether into these powerful blockchain networks will give the stablecoin the opportunity to build new features and functionalities to further expand its adoption in the industry.
Polkadot and Kusama are blockchains developed to offer scalability and high performance, in addition to other innovations that the stablecoin hopes to take advantage of. Its CEO, Paolo Ardoino, noted that the launch of USDT on Polkadot is likely to occur on the common good parachain StateMint, a parachain with on-chain governance designed to offer functionality for stablecoins, CBDCs and NFT tokens and coming to market very soon.
So far, USDT is the most traded stablecoin on the market, both in the stablecoin and blockchain sectors. cryptocurrencies, ; even more transactional than himself Bitcoin (BTC).
In the last year, tether grew more than 10 times its market capitalization, going from $4.000 billion in March 2020 to more than 43.000 million at the time of this edition. The importance that tether has achieved in the market has not been overshadowed by the lack of transparency of its creators, who until recently faced a ban from New York regulators for hiding essential information from their investors, including million-dollar losses for more than 850 million dollars.
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Building on Polkadot
Polkadot parachains are scheduled to hit the market this year, possibly in the fourth quarter or at the end, and their arrival will allow the creation of blockchains interconnected with Polkadot, with specific functionalities that will allow offering direct solutions to each present or future problem within the crypto industry.
Also, common good parachains are an innovation driven by Polkadot to offer a space where new applications and projects are developed in a neutral way. For its part, the Kusama network serves as Polkadot's test network. Kusama offers a fast and efficient development space where developers can experiment and test their first developments without barriers.
As we see, building on these blockchains allows Tether to develop its stablecoin, and make USDT available to all projects that are also built on these multi-chain and interoperable blockchains, growing in use, adoption and value.
Alternatives to Ethereum
Tether Limited's recent announcement to launch its stablecoin on Polkadot and Kusama also responds to the need for projects to look for alternatives other than Ethereum, one of the most important and valued blockchain networks in the industry, but which is being affected by its high Gas costs. At press time, commission rates on Ethereum exceed $20, and have been at highs above $38.
So far, Tether Limited has migrated its stablecoin to other blockchain networks. The last of these announcements in this regard was made on the Solana blockchain. Now with its integration into Polkadot, Ardoino noted that USDT will have more capabilities to grow significantly in the coming years.
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