Tether Operations Limited, the company behind the popular reserve-backed stablecoin USDT, announced today that its flagship crypto asset will now be available on the Tezos network.
The announcement was made during the Money 20/20 Conference, an event that gathers top professionals and companies in the “global money ecosystem” to discuss key trends, innovations in the field, and the current state of the industry.
According to the company, the number of networks through which the digital asset can be transferred is now standing at 12. A couple of weeks ago, Tether also announced that it was making USDT available on Polygon.
“We’re excited to launch USDt on Tezos, offering its growing and vibrant community access to the most liquid, stable, and trusted stablecoin in the digital token space”, said Tether’s Chief Technology Officer, Paolo Ardoino.
The incorporation of USDT to the Tezos network would allow all protocols built on top of this layer-one blockchain to incorporate the stablecoin whether that is for staking, yield farming, lending, or other purposes.
“The launch of USDt on Tezos will undoubtedly unlock new DeFi products and I expect the impact on volume growth of the Tezos DeFi ecosystem to be remarkable”, stated Alessandro de Carli, the founder of Papers – a company that specializes in developing blockchain-based mobile-first applications.
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What is Tether and Why It Is Considered a Cornerstone of the Crypto Ecosystem?
Tether has grown to become the largest stablecoin in the ecosystem by market capitalization with its value currently standing at nearly $80 billion. The purpose of this product is to facilitate transactions within the blockchain by allowing users to temporarily park their money into an asset whose value is pegged to the US dollar and other fiat currencies.
In addition, USDT can be used to operate in the decentralized finance (DeFi) space as users can lend their tokens to other parties within the ecosystem and earn an interest in return.
Every USDT token in circulation is reportedly backed by liquid reserves held by the parent company Tether Operations Limited. According to the latest report issued by the firm, by the end of March this year, the company had $82.42 billion in total assets. These assets exceeded the amount required to redeem all USDT and other stablecoins issued by Tether that are currently in circulation. (Click here to see the full reserves report)
By using the company’s official website, investors can easily redeem their Tether tokens for US dollars or they can also rely on peer-to-peer (P2P) platforms supported by centralized exchanges like Binance to exchange their USDT tokens for other fiat currencies.
What is Tezos?
The Tezos network pioneered the concept of self-upgradable blockchains. These projects are designed to implement changes to the mainnet right after a proposal has been approved by the community.
As a result, holders of the blockchain’s native token XTZ have full control over what goes on with the network. This increases decentralization and limits the role of the developing team to making sure that the network keeps running efficiently and that changes are implemented accordingly.
Tezos is a proof-of-stake (PoS) network. This means that investors can earn money by staking their XTZ tokens. These tokens are used by existing nodes to increase their participation in the network’s day-to-day operations to keep it safe.
According to data from CoinMarketCap, the market capitalization of XTZ is standing at $1.97 billion as of today making it the 33rd most valuable cryptocurrency in the ecosystem at the moment.
The price of the XTZ token is rising 7.5% this morning following Tether’s announcement at $2.2 per coin. So far this year, the token has shed 50% of its value in the same fashion as most altcoins as a shift in macroeconomic conditions has prompted a negative change in the market’s sentiment toward high-risk assets.
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