Tether has launched its USDT stablecoin on the Solana blockchain, making it the first stablecoin to be deployed on the high-speed Layer1 blockchain, the firm said in a press release shared with The Chain Bulletin on 11 March.
According to the announcement, the Solana network — which is aiming to become a competitor of Ethereum — will allow its users to make transactions using USDT at “speeds greater than 50,000 transactions per second”. The blockchain will not only provide high TPS to USDT users, but also offer significantly lower transaction fees than the Ethereum network, claiming they will often be “less than $0.00001 per transaction”. The CTO of Tether, Paolo Ardoino, said in a statement:
“This integration with Solana will help to support a dazzling array of projects, including those in DeFi, Web3 and blockchain gaming. We look forward to serving the growing ecosystem of projects being developed on Solana as Tether cements its pivotal role in the digital token ecosystem.”
Bringing the largest stablecoin by market capitalization to its network was an important step in advancing its blockchain, Solana said on its website, as USDT has been one of the most “important elements for cross-platform settlement”. The digital asset already supports networks such as Ethereum, Algorand, EOS, Tron, and others. Solana said in a post on its website:
“Tether and USDt are critical pieces of infrastructure for any successful blockchain project and have been one of the most important elements for cross-platform settlement. This strategic initiative is a significant step for Solana and will be instrumental in advancing the network.”