CryptoWallCity vs MEXC Exchange

Tether’s Stablecoin Launches on Polygon to Support Users

Tether’s stablecoin expands the ability for users on Polygon to generate profits or join and exit the network

The world’s largest stablecoin by market value, USDT, has been added to Ethereum’s layer 2 blockchain scaling solution Polygon to aid the success of its budding platform.

Tether is expected to play a key role in boosting Polygon’s DeFi ecosystem while easing the potential negative effects of market volatility, according to a statement on Friday.

Stablecoins are cryptocurrencies whose value is typically pegged to government fiat currencies, such as US dollars, or commodities, including gold. In theory, they’re designed to be redeemable.

The current market shake, made worse by the collapse of the Terra ecosystem and its algorithmic stablecoin, has cast a shadow of doubt on the legitimacy of stablecoins in general.

USDT is operated by Tether Operations Limited, which has a market capitalization of approximately $72.5 billion and is currently supported on ten other blockchains. Polygon, meanwhile, boasts 19,000 decentralized applications (dApps) — a 500% increase from 3,000 dApps in October, according to a company blog post.

“The Polygon ecosystem has seen historic growth this year,” Tether CEO Paolo Ardoino said in a statement. “We believe Tether will be essential in helping it continue to grow.”

Polygon joins the likes of Ethereum, Solana, Kusama, Liquid Network, Algorand, EOS, Omni, Tron and Bitcoin Cash’s Standard Ledger Protocol to support the ecosystem of stablecoin Tether.

By comparison, Tether’s biggest competitor, Circle’s USDC, has a combined market capitalization of $53.4 billion. Circle, which acquired about $7 billion worth of USDC at the height of Terra’s collapse, has suffered significantly less reputation damage than USDT over the years.

USDT, by comparison, has struggled to maintain its legitimacy in the eyes of investors amid a thick regulatory history of its reserve claims being adequately supported.

Last year, the US Commodity Futures Trading Commission fined Tether $41 million after revealing that the company did not have enough fiat reserves to back its stablecoins.

In an April 2019 affidavit, Tether’s general counsel, Stuart Hoegner, revealed that only 74% of USDT is backed by “cash and cash equivalents” while the rest is in “small” form. more liquid”.

Comments (No)

Leave a Reply