A new milestone for Tether (USDT). The stablecoin has launched on the Polkadot (DOT) network, adding another string to its bow. Will it widen the gap with its biggest competitor USDC?
Tether (USDT) lands on Polkadot
The news was announced this weekend: Tether USDT is now available on Polkadot. As a reminder, is Polkadot is an interoperable protocol linking several blockchains, to make a single network. It is one of the “Ethereum killers” of magnitude, which had been rather discreet in recent months but is currently starting to make news again.
As a reminder, USDT was originally available on Ethereum (ETH), but it has since its creation expanded to new networks and blockchains. It is currently available on Tron (TRX), Algorand (ALGO) and Solana (SOL) among others.
According to Tether, this addition allows USDT to be offered to a larger number of people, but also combats potential volatility:
“[Tether] continues to strengthen its presence in decentralized ecosystems. This will help mitigate the potential negative effects associated with market volatility, while providing a stable currency that allows for reward generation.”
It’s also an implicit message of confidence for Polkadot, which sees itself associated with the largest stablecoin in the market. A point not lost on Paolo Ardoino, Tether’s CTO:
“Polkadot is headed for growth and evolution this year, and we believe the addition of Tether is going to be key to helping it continue to flourish.”
USDT is positioning its chips to continue dominating the USDC
Will this allow Tether to continue to compete with the USDC? Circle/Coinbase’s stablecoin has recently shown its big ambitions, and some believe it is ready to overtake the USDC in terms of capitalization.
So the battle will continue to play out. On the one hand, the USDT is available on a large number of networks and is still used by the majority. And on the other hand, a less sulphurous and more transparent USDC, but which is also overzealous in terms of regulation. Who will win the war?