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Tether – the company behind the world’s largest stablecoin – has now launched its premier Tether token (USDT) across Polygon. This will bring Tether’s utility to thousands of dapps running on the blockchain.
- Polygon is a layer 2 scaling solution for the Ethereum network. It allows for speedier transactions with lower fees, using technologies like optimistic rollups and ZK rollups.
- Over 19,000 dapps run on the network – up from 3000 in October – created by more than 8000 developer teams.
- Tether issues a variety of tokens backed by assets with a relatively “stable” value, such as US treasury bills and commercial paper. These assets are used to keep its tokens pegged to a relatively stable value.
- Tether’s USDT tokens are value pegged to one dollar each. Meanwhile, Tether’s recently announced MXNT is pegged to the Mexican peso.
- Such stable assets are helpful for executing fast trades in the crypto market, and for alleviating risks caused by market volatility in the defi ecosystem.
- With the Polygon launch, USDT is now available on 11 blockchains. These include Ethereum, Solana, Avalanche, Algorand, Tron, Omni, EOS, Liquid Network, Kusama, and Bitcoin Cash’s Standard Ledger Protocol.
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“We’re excited to launch USD₮ on Polygon, offering its community access to the most liquid, stable, and trusted stablecoin in the digital token space,” said Paolo Ardoino, CTO at Tether.
- USDT recently experienced some instability following the stablecoin panic in the wake of TerraUSD’s (UST’s) collapse. UST was an algorithmic stablecoin, backed by an unstable cryptocurrency rather than direct dollars.
- However, Tether’s peg quickly recovered, and the company reassured holders that reserves were fully backed in a report last week.
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