Tether, the company behind the largest stablecoin, USDT, has partnered with Kava, a lightning-fast layer-1 blockchain, to launch USDT on the Kava network. This move opens up a whole new world of DeFi opportunities for USDT holders and the Cosmos ecosystem.
USDT Launches On Kava
Despite USDT being available across various popular blockchain networks, including Ethereum, Polygon, Tron, BNB Chain, and Solana, Tether seems to continue to work hard as it grows its footprint across the Web3 industry.
Late last month, the company announced plans it is looking to launch the stablecoin on the Kava blockchain – a blockchain with a co-chain design that combines the flexibility of the Ethereum virtual machine with the speed, low transaction fees, and interoperability of the software development kit of Cosmos
“The Kava network is a unique and widely followed blockchain with a robust track record of four years with zero security issues, which is essential to protecting USD₮ users. Together, we aim to reshape the future of decentralized finance, fostering a robust and inclusive ecosystem that benefits users worldwide,” said Paolo Ardoino, CTO at Tether
How This Integration Benefits The Cosmos Ecosystem
Many stablecoins have come and gone in the industry, with some of them losing their footing and peg to the US dollar. However, USDT continues to stand strong despite Tether being criticized for not being transparent in its reserves attestation. There have also been lawsuits against the company over alleged market manipulation.
Being pegged 1:1 to the US dollar, the USDT stablecoin is a foundational piece that provides stability and liquidity, allowing for more complex DeFi applications to be built. The integration of Tether’s USDT on Kava makes deep stablecoin liquidity across Cosmos’ Inter-Blockchain Communication (IBC) and Ethereum Virtual Machine (EVM) ecosystems easily accessible.
With a stablecoin like USDT available, developers now have access to a reliable price-stable asset, providing them with an incentive to build innovative new DeFi apps on Kava and Cosmos.
Additionally, Kava recently launched its “Kava 13” mainnet update, upgrading its infrastructure to allow USDT functionality, greater security, scalability, and speed.
The integration of USDT into the Kava ecosystem will offer users cost savings when transferring the stablecoin across the Cosmos blockchain ecosystem – a blockchain that allows applications to scale to millions of users and to transfer value with each other.
With a market capitalization of over $83 billion, USDT is not only the largest stablecoin in the world but also the third-largest cryptocurrency overall, behind Bitcoin and Ethereum.