Tether launches Stablecoin on Algorand’s next generation Blockchain
Tether (USDT), the largest stablecoin in the world, has gone live on Algorand 2.0. In the process, Tether became the first stablecoin in the market to leverage the Algorand blockchain to provide instant confirmation, micropayments, and automatic wallet support.
Tether’s unstoppable expansion
Tether has been on an absolute tear when it comes to multi-blockchain expansion. Back in 2014, Tether launched on Bitcoin’s Omni Layer in 2014. Since then, it has expanded to several blockchains like Ethereum, EOS, Liquid Network, Tron, and now Algorand.
Regarding Tether’s cross-chain presence, Paolo Ardoino, CTO at Tether, said:
“A key strength of Tether is that it is underpinned by a rich diversity of different blockchains. Our latest collaboration with Algorand leverages the speed and security of Algorand’s protocol to give traders fast settlement and reduced counterparty risk in their fiat to digital asset transactions. Tether and Algorand both share a desire to keep building next-generation financial products and we feel our growing customer base will appreciate and benefit greatly from this collaboration.”
Tether has also launched several stablecoins tied to assets like the Euro, the Chinese Yuan, and gold. With a marketcap of $4,652,571,645, Tether is presently the ninth-largest coin in the market.
Algorand is the world’s first open-source, permissionless, pure proof-of-stake blockchain protocol for the next generation of financial products. The brainchild of Turing Award-winning cryptographer Silvio Micali, the company is dedicated to removing friction from the financial exchange.
The partnership allows Tether to leverage the innovative elements of blockchain offered on Algorand 2.0 (a recently implemented upgrade to the blockchain), such as instant confirmation of transactions, performing micropayments, and automatic wallet support. Tether will be using Algorand Standard Asset (ASA) technology, one of the critical features of the Algorand 2.0 upgrade.
ASA allows anyone to create a Layer-1 token or asset on the Algorand network. The property of thse assets are as follows:
- The newly created tokens inherit all the same features, security, transaction finality, and performance of the primary token (Algo).
- The standard assets are configurable and can be allowed to represent virtually anything.
Steve Kokinos, CEO of Algorand Inc, said about the Tether collaboration:
“We are excited that Tether has chosen to join the Algorand ecosystem and its stablecoin will benefit from technology that provides immediate transaction finality and security to support a strong and more stable defi economy. Tether’s issuance of their asset on Algorand will be a gamechanger for global defi participants as it is one of the fastest and safest ways to move money around the world.”
Algorand 2.0 will allow companies to build decentralized financial applications at an enterprise level. Tether will benefit greatly from the high-performance capabilities of Algorand’s blockchain. Plus, because of its sheer popularity, Tether will attract a lot of users and developers to jump on to Algorand.