Tether declared on Tuesday that its token, USDT, will be available on the Polkadot and Kusama networks soon. It is yet to be decided when the first stablecoin will be present on these ecosystems due to the creation of parachains.
“We are expecting the launch of Statemint in the next few months, but the roadmap is not yet finalized, and so this is all still in the planning stages.”Tether CTO, Paolo Ardoino
Parachains are simpler forms of blockchain, that run on the Polkadot network. They can not only connect with each other, but with exterior systems as well, and their security is provided by the relay chain.
What is Kusama?
Kusama was launched in 2019 and is randomly called Polkadot’s “cousin”. It was created as a test ecosystem, where experimental developments and tests can be done much faster. Even though Kusama and Polkadot are part of the same “team”, they are two different networks. Kusama in fact helps with the development of projects and makes them ready to pass to Polkadot.
According to Tether CTO Paolo Ardoino, the token will be launched on Kusama’s network at first, on the Statemint parachain. Polkadot developer Parity Technologie presented Statemint to the public last month and focuses on deploying digital assets like stablecoins in the Polkadot and Kusama with lower fees.
“We also continue to look at Kusama. Kusama would theoretically allow us to start experimenting with supporting Tether on parachains even before Statemint is officially live.”Tether CTO, Paolo Ardoino
USDT, with a market capitalization of more than $43 billion, is currently available on eight networks. The most important is certainly Ethereum, Polkadot’s principal rival, with approximately $23 billion worth in USDT.
Tether is enthusiastic about USDT being the first stablecoin on the Polkadot network:
“Polkadot, with its parachain structure, has the ability to grow significantly in the coming years. This growth will be driven by its high level of scalability.”Tether CTO, Paolo Ardoino