Tether, the world’s largest stablecoin company, has launched its USDT stablecoin on the Polygon network bringing its utility to the over 19,000 decentralized applications (dApps) running on Polygon.

Polygon, an L2 (layer 2) scaling solution for Ethereum, allows faster transactions and lower transaction costs by using ZK rollups or optimistic rollups technologies. More than 8k developers teams created its dapps starting at 3k in October.

Tether has a variety of tokens backed by assets with a more “stable” value like the commercial paper and US treasury bills. Tether tokens remain pegged at one dollar each due to these assets. Tether also recently launched MXNT, a stablecoin that will be pegged to the Mexican Peso.

Stable assets offer many benefits

Stable assets can be very valuable as they help increase the rate trade in the market and also reduce volatility in the DeFi ecosystem.

Polygon is now host to USDT. Other blockchains that host USDT are; Solana, Ethereum, Avalanche, Omni, Kusama, Algorand, EOS, Bitcoin Cash’s Standard Ledger Protocol, and Tron.

Paolo Ardoino is Tether CTO.

“We’re excited to launch USD₮ on Polygon, offering its community access to the most liquid, stable, and trusted stablecoin in the digital token space.”

USDT was affected by some turbulence following the collapse of TerraUSD (UST). This was impossible to deal with as UST was an algorithmic stabilizecoin that was backed instead by direct dollars.

However, Tether’s recovered its peg quickly and reassured its holders that their reserves were fully backed.