The market’s premier stablecoin, Tether’s USDT, continues to build its presence in the crypto ecosystem. In effect, the stablecoin’s issuing company has announced that it will soon be available on the Cosmos-based layer 1 blockchain, Kava. Kava thus joins the rank of blockchains hosting USDT, including Ethereum, Solana, Avalanche, Polygon, Near Protocol and Bitcoin via Omni.
USDT, a confirmed multi-chain presence
The Kava blockchain was designed using a co-chain architecture. This structure allows combine the flexibility of the Ethereum virtual machine with the speed, low transaction fees and interoperability of the Cosmos SDK.
The CTO of Tether, Paolo Ardoinopointed out that the absence of technical or security incidents on the blockchain was a main factor behind the choice of Kava:
“The Kava network is a unique and widely followed blockchain with a strong track record over four years without any security issues, which is essential to protect USD₮ users. »
A major upgrade was recently rolled out to the Kava blockchain, Kava 13. This upgrade brought architectural enhancements to help developers scale and accelerate their protocols. Furthermore, this upgrade helps to optimize the user experience in the Kava ecosystem.
Undisputed dominance for USDT
Two incidents have recently drawn the attention of observers and the general public to Tether. The first is the loss of parity of the stablecoin against the US dollar that occurred on the day of June 15. The second concerns the revelations relating to the financial situation of Tether between 2019 and 2021. USDT parity loss was mainly attributed to transactions made by whales. As for the second incident, documents issued by the New York Attorney General confirmed that Tether had proceeded to the granting of guaranteed loans during this period. In addition, they also brought details on the situation of Tether reserves.
These incidents had a minor impact on the USDT which continues to largely dominate the stablecoin sector. Moreover, as noted by the on-chain analysis company Glassnode, investors seem to be moving away from risky altcoins towards safe havens such as Bitcoin and stablecoins. USDT appears to have absorbed a significant amount of liquidity from Binance’s BUSD and Circle’s USDC.
Sources: Tether, Glassnode