In a major step forward for the development of the Cosmos DeFi ecosystem, Tether’s USDt, the most liquid stablecoin in the world, has launched on Cosmos through Kava. The release of Kava 14 USDt issued on Kava may now be transferred between the Cosmos Inter Blockchain Communication (IBC) and EVM blockchains via an “internal bridge” with restricted access that dramatically reduces attack vectors.
Kava is a scalable, developer-friendly Layer-1 blockchain that brings together the best features of Ethereum and Cosmos. It is also important to note the high level of security on the Kava network, whose blockchain has been in operation for four years with no security issues. This is welcome news for USDt users on the network.
Kava’s support for Tether USDT ensures that the Cosmos IBC and EVM ecosystems have ready access to Tether’s extensive stablecoin liquidity. By using Tether, a stablecoin with a solid reputation and approximately 65% of the stablecoin market share, both users and developers will benefit from enhanced security and reliability.
Native USDt issued on Kava solves problems of scalability, liquidity, and volatility that have plagued the Cosmos ecosystem up until this point. In addition, Cosmos dApp and appchain users, as well as EVM dApp users, now have access to a trusted and widely used stablecoin thanks to native USDt.
Scott Stuart, Co-Founder of Kava, stated: “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.”
Third-party bridge solutions often lead to fragmented pools of wrapped assets, and this integration avoids that route. Kava gives its users a fast and secure means of transferring stablecoin liquidity and moving assets between chains.
Therefore, this integration has the potential to spur a large expansion of the DeFi economy on Cosmos, offering an enticing solution to the problematic liquidity problem that has persisted since the collapse of Terra’s UST in 2022.
This post was last modified on Jul 07, 2023, 08:45 BST 08:45