Tether’s USDT Launches on Cosmos through Kava

Tether’s USDT, the globally most liquid, secure and transparent stablecoin, has successfully commenced operations on Cosmos, facilitated through Kava. This significant stride contributes to deepening the stablecoin liquidity within the Inter-Blockchain Communication (IBC) and Ethereum Virtual Machine (EVM) ecosystems of Cosmos.

Tether’s USDT integration on Kava addresses key concerns related to the Cosmos ecosystem, including restricted growth, liquidity fragmentation, and heightened volatility. This integration allows both users and developers to access native USDT, extending a reliable, universally adopted stablecoin to users of Cosmos DApp and appchains, as well as EVM DApp.

A Strong Alliance for Enhanced Liquidity

Kava’s co-founder, Scott Stuart, conveyed his enthusiasm for the successful integration, stating, “Our support for Tether’s USDT integration unlocks much-needed stablecoin liquidity across the Cosmos and EVM ecosystems. Tether’s choice makes Kava a key support and a strong ally for Cosmos ecosystem projects building out the internet of blockchains.”

Contrary to external third-party bridge solutions that result in fragmented pools of wrapped assets, the launch of Kava 14 allows USDT natively issued on Kava to be transferred between IBC and EVM blockchains via an “internal bridge”. This bridge features stringent access controls and restrictions that significantly reduce attack vectors. It facilitates quick and highly secure movement of assets across chains, presenting an efficient method for stablecoin liquidity provision and transfer.

Potential Catalyst for DeFi Economy Expansion

This integration might serve as a springboard for a substantial expansion of the DeFi economy on Cosmos. It offers a promising solution to the liquidity issue that has been a persistent challenge since the downfall of Terra’s UST in Q1 2022. The deployment of Tether, a stablecoin with a strong market reputation and a market dominance of approximately 65%, is likely to extend enhanced security and reliability to users and developers.

Tether’s chief technical officer, Paolo Ardoino, opined, “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. Together, we aim to reshape the future of decentralized finance, fostering a robust and inclusive ecosystem that benefits users worldwide.”