Tether selects Kava as its entry point into the Cosmos ecosystem. Kava is a layer-1 blockchain built for scalability and speed. Tether’s choice to include the most liquid, secure, and transparent stablecoin USDt in Cosmos appchains and Kava EVM dApps excites and honors Kava.
“Kava’s support of Tether’s USDt integration will help bring stability and unlock liquidity across Cosmos and EVM ecosystems. Native USDt issued on Kava will address the limited growth, low liquidity, and increased volatility of using the Cosmos ecosystem, and help ignite a robust DeFi economy, empowering appchains, EVM dApps, and their users with a secure and widely adopted canonical stablecoin,” said Scott Stuart, Kava Co-Founder.
Users and developers within the Cosmos ecosystem will benefit from accessibility and financial stability as a result of Tether’s decision to integrate USDt directly on Cosmos leveraging Kava as a hub. Natively issued USDt on Kava offers a streamlined, efficient mechanism for stablecoin liquidity provision and transfer between the Cosmos and Ethereum ecosystems, in contrast to external bridge solutions, which multiply dozens of versions of a wrapped asset, siloing liquidity, discouraging participation, and harming user experience.
The DeFi economy on Cosmos might thus potentially grow significantly as a result of this integration, offering a convincing answer to the liquidity issue that has been a problem ever since Terra’s UST collapsed in Q1 2022. Using Tether, a stablecoin with a solid track record and a 65% market share, will also give consumers and developers alike more security and dependability.
“The Kava network is a unique and widely followed blockchain with a robust track record of four years with zero security issues, which is essential to protecting USDt users,” said Paolo Ardoino, CTO at Tether, in the June 21, 2023 announcement. “Together, we aim to reshape the future of decentralized finance, fostering a robust and inclusive ecosystem that benefits users worldwide.”
