- Tether, the leading stablecoin issuer, has revealed plans to launch USDT on the Kava blockchain, a move that will redefine the cryptocurrency landscape.
- This collaboration enhances efficiency and liquidity as clients will benefit from USDT for more cost-effective and fast transactions on the Kava platform.
- This partnership is expected to drive the broader adoption of stablecoins in the DeFi space.
In an exciting development in the cryptocurrency industry, Tether Operations Limited (Tether. to) announced on 21st June 2023 that it is introducing USDT tokens on Kava.
Tether, which is well known for its stablecoin, said in a press release that it will bring USDT on Kava, which is a layer-1 blockchain known for its speed and scalability in service delivery.
Tether’s USDT Launches On Kava
The news that was sent to the press in a statement through the Tether CTO Paolo Ardoino stated in part:
“We are delighted to introduce USD₮ on the Kava network, granting its vibrant community access to the world’s first, most giving, widely adopted stablecoin.”
The statement further explained why the partnership with Kava was important acknowledging that the network is “unique and widely followed blockchain with a robust track record of four years with zero security issues, which is essential to protecting USDT users”
Ardoino further said:
“We aim to reshape the future of decentralized finance, fostering a robust and inclusive ecosystem that benefits users worldwide.”
Launched in 2018, the Kava network has maintained its uniqueness by being built with co-chain design combining the flexibility of the Ethereum virtual machine (EVM) and the “speed, low transaction fees, and interoperability” of the cosmos’ software development kit – one of the largest organic ecosystems in crypto space.
This informed Tether’s decision to bring its stablecoin to Kava. “This unique architecture allows users to take advantage of Cosmos’ “zones” feature in the Kava protocol”, read the Tether statement.
In May, Kava successfully launched its “Kava 13” mainnet update, upgrading its infrastructure to offer users greater security, scalability, functionality, and speed.
The team behind the Layer 1 blockchain has expressed enthusiasm in response to this impending collaboration. Their latest tweet stated:
“Kava is honored to serve as the USDT Hub for the #Cosmos ecosystem! Let’s keep building and growing #DeFi across the interchain.”
USDT was the first stablecoin in the crypto market and its value is pegged 1:1 to the US dollar. It is currently the largest stablecoin by market capitalization which currently stands at $83.18 billion, according to data from CoinMarketCap.
What Does the Collaboration Mean for Tether?
This development further solidifies the USDT’s position as the most widely used stablecoin. TetherUSD is now operational on several networks including “Ethereum, Solana, Algorand, EOS, Liquid Network, Omni, and Tron”, the announcement said.
Tether stablecoin has always been adopted as the reserve currency for many traders since its value is stable and is pegged to the dollar, unlike the other top cryptos which experience high price volatilities.
The partnership, therefore, will drive Tether higher adoption levels, giving its users more options in the DeFi sector with the addition of Kana which is regarded as one of the most secure platforms in the market.
The introduction of USDT on Kava will enable the platform to introduce new financial products that will leverage the power of the USDT, for instance, the introduction of decentralized exchanges (DEXs) and yield farming.
