Tether's stablecoin starts on polygon to support historical growth

Tether's stablecoin starts on polygon to support historical growth

The world's largest stablecoin, USDT, was added to the Layer 2 blockchain scaling solution Polygon from Ethereum to support the success of its aspiring platform.

According to an explanation on Friday, Tether will probably play a key role in promoting the polygon defi ecosystem and at the same time relieve potential adverse effects of market volatility.

stablecoins are cryptos, the values of which are generally linked to state fiat currencies such as the US dollar or raw materials, including gold. Theoretically, they are designed in such a way that they are redeemable.

The current market cleanup, which was still worsened by the decline of Terra's ecosystem and its algorithmic stable coin, has given a shadow of the doubt about the legitimacy of stable coins as a whole.

USDT, operated by Tether Operations Limited, has a market capitalization of around $ 72.5 billion and is currently supported by ten other blockchains. Polygon, on the other hand, has 19,000 decentralized applications (DAPPS) - an increase of 500 % compared to 3,000 DAPPs in October, according to a company blog entry .

"The polygon ecosystem has experienced historical growth this year," said Tether CEO Paolo Ardoinino in a statement. "We believe that Tether will make a decisive contribution to continuing to thrive."

Polygon Ethereum, Solana, Kusama, Liquid Network, Algorand, EOS, Omni, Tron and the Ledger Protocol from Bitcoin Cash as supporting ecosystems from Tethers StableCoin.

The largest rival of Tether, Circle’s USDC, has a total of $ 53.4 billion in comparison. Circle, which has redeemed the collapse of Terra USDC worth around $ 7 billion, has suffered significantly fewer reputation damage over the years

In comparison, USDT had to fight to keep it up to Legitimity In view of an eventful legal story, reserves are satisfactorily secured.

Last year the US Commodity Futures Trading Commission imposed a fine for Tether 41 Millions of dollars after it became known that the company did not have enough fiat reserves to support its stable coins.

In an affidavit from April 2019, Stuart Hoegner, General Counsel of Tether, only 74 % USDT are covered by "cash and means of payment" during "a less liquid form".

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The contribution Tether’s StableCoin Launches on Polygon to Support 'Historical Growth' is not a financial advice.