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Tether expands stablecoin reach, USDT now on Kava blockchain

TL;DR

  • Tether has launched its stablecoin, USDT, on the Kava blockchain, strengthening its leadership in the stablecoin market.
  • According to Tether’s CTO, this new stride is set to benefit Kava’s community and further decentralize finance.
  • The announcement triggered a surge in Kava’s token value and followed a record high in Tether’s market capitalization, indicating ongoing market dominance.

Tether Operations Limited, the entity behind the pioneering USDT stablecoin, has announced its expansion to the Kava blockchain. However, this strategic move further solidifies Tether’s position as the most widely adopted stablecoin and promises to enhance liquidity across multiple blockchains​.

Kava, a layer-1 blockchain founded in 2018, is known for its innovative co-chain design that offers an ideal foundation for Tether’s dollar-pegged tokens. It combines the flexibility of the Ethereum virtual machine with high-speed transaction processing, low fees, and interoperability of Cosmos’ software development kit. This unique architecture enables users to take full advantage of Cosmos’ “zones” feature within the Kava protocol, thereby adding to its attractiveness for stablecoin integration​.

Tether’s decision to launch on the Kava platform is expected to benefit Kava’s vibrant community significantly. “We are delighted to introduce USDT on the Kava network,” stated Paolo Ardoino, CTO at Tether. “Kava boasts an exceptional track record of four years without any security issues, which is vital for safeguarding USDT users. Together, we aspire to reshape the future of decentralized finance, fostering a resilient and inclusive ecosystem that benefits users worldwide,” he added, expressing enthusiasm about the partnership​. 

Tether’s stablecoin dominance and the impact on Kava 

Already integrated with several networks, including Ethereum, Tron, Binance Smart Chain, Solana, and Bitcoin via Omni, Tether continues to broaden its footprint in the realm of decentralized finance​.​ This new collaboration with Kava is poised to reinforce Tether’s leadership position in the digital token landscape.

The announcement of Tether’s integration with Kava coincided with a surge in Kava’s native token (KAVA), which saw an increase of as much as 4.8% to $0.937 before settling back to $0.912, according to CoinMarketCap. This rise reflects a broader recovery in the crypto market and an increased interest in Kava due to the recent expansion.

Kava’s mainnet was upgraded last month to improve transaction speeds and the functionality of cross-chain bridges, further reinforcing its infrastructure for better security, scalability, and speed. This enhancement, coupled with the integration of USDT, is expected to fuel growth and resilience in the Kava ecosystem​.

Tether’s market capitalization recently hit an all-time high of $83.5 billion, gradually gaining market share from its main competitor, USD Coin (USDC), which has a market cap of $28 billion.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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