Popular stablecoin USDT now natively exists on the Polkadot blockchain—a layer-0, interoperable ecosystem connecting multiple PoS chains together. Tether, the company behind USDT, announced the launch on 23 September.
At a time when stablecoin wars are nigh, Tether’s move to make its liquid stablecoin available to the Polkadot community might just be to strengthen its on-chain presence. Also, Polkadot is one of the few multi-chain ecosystems with a defined Web 3.0 focus, giving USDT a decentralized presence.
Tether CTO Paolo Ardoino believes that USDT’s addition will help advance Polkadot’s growth and evolution trajectory. As of now, USDT is the third largest crypto, with a market cap of almost $68 billion.
With Polkadot, USDT consolidates its stature as the preferred stablecoin for blockchains. Currently, it is also supported on platforms like Solana, Ethereum, Tron, EOS, Algorand, and the like.
The availability of USDT as the native transaction tool on the Polkadot ecosystem will allow developers to build and launch targeted DeFi apps across chains. USDT will be particularly useful as part of Polkadot’s innovative Relay Chain— a modular extension that connects multiple parachains. As a stablecoin backed by the US dollar, USDT will minimize transaction volatility across the parachains, helping generate stable yields and move assets both in and out of the Polkadot network.