Tether will soon be bringing its popular USDT stablecoin to Polkadot (DOT). It will be the first stablecoin to launch on the relatively new blockchain network.
Stablecoins are cryptocurrencies whose value is linked to another asset or currency. In the case of tether, it is the US dollar (USD). It is by far the largest stablecoin on the market and is very popular in crypto trading.
The Polkadot network consists of so-called parachains, which are separate blockchains that run parallel to each other and can communicate with each other. Normally these parachains are built by external developers and can compete with each other.
The launch of USDT on Polkadot will coincide with the launch of a new kind of parachain. This “common goods” parachain is more of a “neutral terrain” intended to build essential functions.
USDT is likely to launch on StateMint, the first of these kind of parachains. First, however, the stablecoin will land on Kusama, a sister network of Polkadot, primarily intended as a kind of test environment.
Tether is already available on the networks of Bitcoin (BTC), Ethereum (ETH), Tron (TRX), EOS (EOS), Algorand (ALGO), Bitcoin Cash (BCH) and recently Solana (SOL). Tether recently hit a market cap of $ 40 billion, more than half of which is on Ethereum.
Polkadot recently overtook Tether on the list of largest crypto to fourth place with a market cap of $ 44 billion. The DOT price hit a new all-time high (ATH) of $ 46.45 on April 3.
Tether released a report last week showing that the company has enough reserves in house to cover USDT, a subject of years of controversy. Enjin (EJN) announced last week that it will build a parachain on Polkadot for non-fungible tokens (NFTs) called Efinity.