Polkadot Launches USDT Mining on Blockchain
The cryptocurrency company Tether announced this Friday the launch of the USDT stablecoin on the Polkadot blockchain.
The inclusion of the stablecoin in the Polkadot network aims to increase the presence of the stablecoin in decentralized ecosystems. In addition to lessening the adverse effects associated with market volatility and providing a stable currency to generate income on the network.
Paolo Ardoino, CTO of Tether, stated that the company is pleased to launch USDT on Polkadot and offer the community access to the most stable and reliable stablecoin in the blockchain space.
USDT on different networks
The launch of USDT on Polkadot further highlights Tether’s dedication to collaboration and interoperability in the growing digital asset space.
USDT stablecoin is currently active on a total of eleven networks, including:
- Liquid Network.
- Standard Ledger (a Bitcoin Cash protocol).
What is Tether (USDT)?
Tether (USDT) is a stablecoin with collateralization in fiat (local) currencies, also called IOU currencies. In other words, all USDT collateralization comes exclusively from the company’s reserves.
Collateralization is the act by which a debtor offers a certain asset to the creditor in guarantee of payment of the obligation, preventing default situations.
Quite simply, this means that for every 1 USDT created, the Tether management company needs to have 1 dollar in its bank reserves, ensuring that there are the necessary resources for investors of the currency.
This cryptoasset has as main objective to be a bridge between the traditional financial sector and the cryptomarket. For this reason, USDT is widely used to facilitate transactions between large companies, in addition to making it easier for retailers to purchase the dollar.