In an effort to improve liquidity across various blockchains, Tether, a prominent stablecoin provider, has decided to issue its stablecoin, USDT, on the layer 1 blockchain of Kava.
The objective of this strategic move is to grant the Kava community access to the world’s first, highly trusted, and extensively utilized stablecoin.
By issuing USDT on the layer 1 blockchain of Kava, Tether aims to provide Kava’s users and community members with the opportunity to leverage the benefits of the world’s leading stablecoin.
Kava was established in 2018 and has gained recognition for its co-chain design, which provides an infrastructure for hosting Tether’s dollar-pegged tokens.
The platform incorporates the best features of the Ethereum virtual machine, such as its flexibility, fast transaction processing, low fees, and the interoperability provided by Cosmos’ software development kit.
Additionally, in a recent update, the Kava blockchain underwent a significant upgrade to its mainnet, resulting in notable improvements in transaction speeds and the functionality of cross-chain bridges.
Paolo Ardoino, the Chief Technology Officer at Tether, has stated:
We’re thrilled to be launching USD₮ on Kava, offering its strong community access to the world’s first, most stable, most trusted, and most widely used stablecoin.
He further highlighted the impressive track record of the Kava network in terms of security. The Kava network has operated for four years without any security issues, emphasising the importance of safeguarding the interests and assets of USDT users.
Tether Plans Utility Expansion In The DeFi Space
The integration of Tether on the Kava blockchain brings a range of opportunities for users within the decentralized finance (DeFi) space.
With Tether’s stablecoin available on Kava, users can leverage it for various DeFi applications, including borrowing, lending, yield farming, and decentralized trading.
By utilizing Tether on Kava, users can access stable liquidity and participate in the growing DeFi ecosystem. The stablecoin’s price stability allows for more reliable collateralization and borrowing, enabling users to engage in efficient lending and borrowing activities on the Kava platform.
Moreover, the integration of Tether on Kava enhances cross-chain asset transfers, facilitating the seamless movement of assets between Kava and other blockchain networks.
The integration of Tether on Kava serves to strengthen the overall DeFi ecosystem by providing increased liquidity, interoperability, and access to stablecoin functionality.
At present, USDT is supported on various blockchain networks, including Ethereum, Tron, Binance Smart Chain, Solana, and Bitcoin via the Omni protocol.
The integration of Tether with Kava has overlapped with a significant increase seen in the price of Kava’s native token, KAVA, suggesting positive market sentiment.
KAVA surged close to 13% and was priced at $0.92 at press time. Last week, Tether’s market capitalization reached a milestone, surpassing $83.5 billion and reaching an all-time high.
Featured Image From UnSplash, Charts From TradingView.com
