Tether, the world’s largest stablecoin company, has launched its USDT stablecoin on the Polygon network, bringing its utility to more than 19,000 decentralized applications (DApps) running on Polygon.
Polygon, a Layer 2 (L2) scaling solution for the Ethereum network, allows for cheaper and faster transaction fees by using ZK Rollup and Optimistic Rollup technologies. Its dapps are built by over 3k to 8k developer teams in October.
Tether has a variety of tokens that are backed by assets with more “steady” Values such as commercial paper and US Treasury bills. These assets hold Tether tokens equal to one dollar each. In addition, Tether recently announced the launch of a new stablecoin, MXNT, which will be pegged to the Mexican peso.
benefits of fixed assets
Stable assets are very important as they help increase the rate of trading in the market as well as reduce all the risks involved in the DeFi ecosystem in case of market volatility.
Polygon is now 11. Isth Blockchain to host USDT. There are other blockchains hosting USDT; Solana, Ethereum, Avalanche, Omni, Kusama, Algorand, EOS, Bitcoin Cash’s Standard Ledger Protocol and Tron.
Paolo Ardoino, Tether CTO said:
“We are excited to launch USD₮ on Polygon, offering our community access to the most liquid, stable and reliable stablecoin in the digital token space.”
Notably, USDT faced some turbulence after the collapse of TeraUSD (UST). This could not be dealt with as UST was an algorithmic stablecoin backed by volatile crypto rather than direct dollars.
However, Tether quickly recovered its peg and reassured its holders that their reserves were fully backed.
