Tether Joins Forces With Kava: A New Era For Stablecoins And Scalable Blockchains

In a major move, Tether Operations Limited, the company behind the stablecoin Tether USDT/USD, has announced the launch of its US dollar-pegged tokens on the Kava KAVA/USD blockchain.

Kava is known for its scalability and speed, making this a significant addition for Tether.

Kava's Unique Co-chain Design

Kava, a layer-1 blockchain established in 2018, features a unique co-chain design, blending the adaptability of the Ethereum virtual machine with the velocity, economical transaction fees, and cross-chain capabilities of Cosmos’ software development kit.

Kava’s distinct architecture permits users to exploit Cosmos' "zones" attribute embedded in the Kava protocol. Furthermore, Kava recently rolled out its “Kava 13” mainnet update, which has bolstered its framework by providing enhanced security, scalability, functionality, and speed.

Tether And Kava Join Forces

Paolo Ardoino, chief technology officer at Tether told Benzinga that Tether strongly believes in the importance of supporting the adoption of stablecoin technology across multiple blockchains, and the best way to demonstrate its commitment to Cosmos users was launching on the Kava Network.

Also read: Did A Trader Buy Bitcoin At A 450% Premium? Not Likely: Price Corrects After Glitch

He lauded Kava’s exemplary performance over the past four years, highlighting its impeccable security record as a crucial factor for safeguarding Tether users.

“Together, we aim to reshape the future of decentralized finance, fostering a robust and inclusive ecosystem that benefits users worldwide,” he said.

A Game Changer For Tether

Tether is accessible on various networks, including Ethereum, Solana SOL/USD, Algorand ALGO/USD, EOS EOS/USD, Liquid Network, Omni OMNI/USD, and Tron TRON/USD.

Background On Tether's Dominance

It's essential to note that Tether has been experiencing significant growth, with its market capitalization reaching an unprecedented $83.5 billion recently. This showcases Tether's increasing dominance, as it continues to gain market share over its primary rival, USD Coin USDC/USD, which has a market cap of $28 billion. 

Read Next: Institutional-Only Crypto Exchange EDX Markets Debuts With Support From Major Financial Firms

Photo: Shutterstock