Tether has announced that it will launch its USDT tokens also on the Tezos blockchain.
Tezos blockchain welcomes Tether (USDT)
Tezos is a blockchain born in 2018 and based on Proof-of-Stake. Its native cryptocurrency, XTZ, is ranked 36th overall by market capitalization.
Tezos is used by brands and institutions working on Web3 projects in particular, so the ability to use stablecoins pegged to the US dollar on its dApps is particularly important.
It is the only layer one blockchain to successfully evolve and update over time without hard forks. To date, 9 updates have already been applied that have reduced gas costs, reduced the carbon footprint, and even replaced the consensus mechanism by introducing a modified BFT algorithm similar to Cosmos’ Tendermint, called Tenderbake.
The next update, also without hard forking, will introduce smart contracts and Optimism roll-ups.
The founder of Papers, Alessandro De Carli, said:
“With the introduction of USD₮, on and off ramps into the Tezos DeFi ecosystem are simplified and efficient. Tezos is an exemplary system with features and tools which have enabled innovative application designs not possible on other networks. The launch of USD₮ on Tezos will undoubtedly unlock new DeFi products and I expect the impact on volume growth of the Tezos DeFi ecosystem to be remarkable”.
To date, the TVL on DeFi protocols on Tezos is still very low, only amounting to just over $55 million, but with the introduction of USDT it is possible that decentralized finance could expand significantly on this blockchain as well.
Within Tezos’s DeFi ecosystem there are for example the yield farming protocol Youves and the decentralized exchange EVM Plenty.
It is no coincidence that the price of XTZ is currently up 8%, even though the accumulated gain over the past 30 days is still 6%. The price is currently 76% below the absolute highs of October 2021.
Tether’s expansion into the blockchain world continues
With the addition of Tezos, USDT becomes available on 12 blockchains, with a market capitalization of approximately $72.5 billion.
Tether‘s goal is to foster cross-chain interoperability within the growing digital asset sector.
Tether’s CTO, Paolo Ardoino, commented:
“We’re excited to launch USD₮ on Tezos, offering its growing and vibrant community access to the most liquid, stable, and trusted stablecoin in the digital token space. Tezos is coming fast onto the scene and we believe that this integration will be essential to its long-term growth”.