Tether USDT announced on Tuesday that the stablecoin is being added to the Polkadot network and the sister network Kusama. Polkadot is a network that allows blockchains to communicate by enabling the movement of tokens and data between the chains.
Stablecoins are digital assets that are backed or supported by a fiat currency or commodity to limit its volatility. Tether USDT is the largest stablecoin with a market cap of $43 billion and is widely used for trading on exchanges.
Institutions have made a splash in the crypto market this year by expanding their crypto services with Bitcoin taking the lead. However, the other participants of the crypto space have also started picking pace as the dominance of Bitcoin continues to decline.
According to Seam Stein Smith, an economics professor, recently weighed in on cryptocurrency. He noted that while “Bitcoin payments are great, stablecoins are the future of crypto.”
Tether USDT to Be Tested on Kusama Network
Paolo Ardino, Tether CTO, revealed that the launch will be on Statemint parachain once Statemint is completed, which will be in few months. Parachains are layer-1 blockchains that run in parallel on Polkadot. This architecture allows the network to achieve multi-chain scalability.
Statemint is responsible for the functionality needed for integrating Tether USDT and other assets on Polkadot and Kusama networks. Kusama is a twin network for Polkadot that allows for prior tests of projects that will be launched on Polkadot.
Ardino revealed that the Kusama network would make it possible to experiment with the stablecoin before the release of the parachain.