Tether will be deploying its stablecoin USDT to Kava, a proof-of-stake EVM/Cosmos SDK hybrid, in an effort to “reshape the future of decentralized finance.”
Tether’s chief technical officer, Paolo Ardoino, said the company was “thrilled to be launching USDT on Kava,” calling the Kava community “strong” and “widely followed.” Ardoino said the four years Kava has been around without having any security issues was a determining factor in the decision to launch native USDT on Kava.
Tether plans to be on Kava with USDT by July 3.
Some in the Cosmos were quick to point out centralization issues on Kava, with top validators having the “lion’s share” of delegations. Others wondered why EVM-compatible Evmos was not chosen. Overall, the general sentiment across social media appears to be bullish for Cosmos as stablecoins are viewed as necessary for decentralized finance and Tether’s USDT was the first and is the biggest stablecoin in existence.
After the collapse of Terra’s UST stablecoin, a widely-reported event that caused an epic crash in the crypto world, Cosmos ecosystem developers such as Sunny Aggarwal have taken a proactive approach to security as a direct result of the “Terra incident.”
“We put all our trust in one security mechanism and we don’t want to do that again,” Aggarwal said in an interview with Design DAO last month.
Noble’s efforts to bring Circle’s USDC to the Cosmos is in the works, with no date set for when it will happen. It remains to be seen how the number two stablecoin by market capitalization will affect the Cosmos, but most ecosystem citizens agree having native stablecoins in the ecosystem is a net positive.
