The integration of Tether’s USDt on Kava has enabled widespread availability of stablecoin liquidity throughout the Ethereum Virtual Machine (EVM) and Inter-Blockchain Communication (IBC) ecosystems of Cosmos, thereby addressing challenges posed by limited development, scattered liquidity, and increased volatility within the Cosmos ecosystem through the provision of a reliable and commonly used stablecoin to users and developers alike. As a result, users of EVM dApps and Cosmos dApps can rely on the safety and wide acceptance of Native USDt.
“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.” – Scott Stuart, Co-Founder of Kava.
Following the launch of Kava 14, the internal bridge in place for the transfer of natively issued USDt on Kava between IBC and EVM blockchains, which boasts strict access controls and limitations that considerably minimize the risk of security breaches, differs from third-party bridge solutions that create disparate wrapped asset pools and enables customers to transfer stablecoin liquidity seamlessly and securely across networks, providing an efficient mechanism for asset movement.
The integration of Tether on Cosmos has the potential to greatly enhance the DeFi economy within the ecosystem, effectively resolving the liquidity challenges that arose after the collapse of Terra’s UST in Q1 2022. By leveraging Tether, a stablecoin with a strong reputation and a dominant market share of 65%, both consumers and developers will benefit from increased security and reliability, instilling confidence in the ecosystem.
Paolo Ardoino, Tether’s CTO, said “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.”
