Tether has teamed up with Algorand to issue the US dollar pegged USDT on the proof-of-stake (POS) DLT platform, Cointelegraph reports.
In a press statement issued on Monday Feb. 10, Tether said that it aims at taking advantage of the innovative aspects of the blockchain which are present on Algorand 2.0 like immediate confirmation of transactions, wallet support as well as performing micropayments.
Tether is the first stable coin available on Algorand’s Next Generation Blockchain Platform.@Algorand users will have access to Tether and will benefit from fast transactions, unlocking the opportunity for micropayments on the blockchain. ⬇️https://t.co/MOnryDAvP0 pic.twitter.com/S8FOadnnh6
— Tether (@Tether_to) February 10, 2020
For Tether to introduce the fresh USDT version, the firm leveraged the Algorand Standard Asset (ASA) that was rolled on in Algorand 2.0. The new tech feature will be helpful in lessening the confirmation times to below four seconds as well as transaction charges to just a fragment of a percent thereby allowing micropayments within the Algorand blockchain. Paolo Ardoino, the chief technical officer at Tether explained:
“Our latest collaboration with Algorand leverages the speed and security of Algorand’s protocol to give traders fast settlement and reduced counterparty risk in their fiat to digital asset transactions.”
According to the press statement, Algorand is the latest blockchain that Tether has partnered with. USDT has been introduced in other blockchain networks such as Tron (TRX), Ethereum, EOS, Omni as well as the liquid network. The deal also makes USDT the first stablecoin to be issued on Algorand blockchain.
Steve Kokinos, Algorand CEO, stated that the issuance of the US dollar pegged coin on Algorand will be a game changer especially for DeFi participants in all parts of the world.
USDT is a major stablecoin in the crypto industry and as per the CoinMarket Cap data, the stablecoin boasts of a $4.6 billion market value and $46.1 billion in its latest 24-hour trading volume.
Various financial organizations in the world consisting of several central banks have in the recent past entered the stablecoin market. As per Cointelegraph’s news article, about six global banks have allegedly expressed their willingness to offer their own stablecoins that will be pegged on their fiat currencies. These stablecoins will be issued through IBM’s blockchain-based payments platform ‘World Wire’.