Tether launched USDT stablecoin on the Polygon network

What’s new? Tether Operations Limited has launched the USDT stablecoin on the Polygon blockchain (formerly MATIC). The asset will play an important role in supporting Polygon’s DeFi ecosystem and will become another stablecoin for the more than 8000 teams operating on this network. This is reported in a press release on Tether’s website.

Press release on the company’s website

What else is known about the launch? The launch of USDT on the Polygon network is designed to mitigate the negative effects associated with market volatility and provide investors with opportunities to generate income and move funds from various networks. As Tether CTO Paolo Ardoino highlighted, the Polygon ecosystem has experienced historic growth this year, and Tether will play an important role in its continued prosperity.

USDT is the largest US dollar-pegged stablecoin by capitalization. As of May 30, the asset sits at number three on CoinMarketCap’s ranking, with a total amount of funds in the circulation of $72,48 billion. Tether currently operates on 11 blockchains, including Kusama, Ethereum, Solana, Algorand, EOS, Liquid Network, Omni, TRON, and the Standard Ledger Protocol from Bitcoin Cash.

Polygon is a Layer 2 (L2) scaling solution that runs on top of the Ethereum blockchain with higher transaction speeds and lower fees. In May 2022, there are more than 19 000 decentralized applications (dApps) on the Polygon network, up 500% from October 2021. More than 142 million unique addresses are registered on Polygon, and the total transaction volume exceeds 1,6 billion.

What events happened before? On May 12, the USDT stablecoin began to lose its peg to the US dollar, its exchange rate dropped to $0,95. Paolo Ardoino said on his official website that the company would continue to redeem assets for dollars at a one-to-one ratio. On May 13, Tether stabilized its peg to the dollar by burning 3 billion USDT. The developers used a special Tether Treasury account to destroy the tokens.

The New York State Court rejected a petition filed by Tether Limited. In it, it asked for permission to block public access to documents explaining the composition of Tether’s reserves over the past few years.