The widely known and controversial stablecoin tether (USDT) is launching on a fifth blockchain.
According to Tether’s website, this means traders will now have a USD stablecoin option on ethereum, omni, EOS, tron, and soon, algorand.
“Extending Tether into the Algorand ecosystem is a fantastic opportunity for us to further contribute to blockchain interoperability and collaboration. … We are very excited about the potential this enables for other projects in the decentralised ecosystem and we eagerly await working closely with many of them in the future,” said Paolo Ardoino, CTO of Tether.
Tether is commonly utilized by traders to transfer money in and out of cryptocurrencies like bitcoin without the need to trade back into dollars after each trade. Cryptocurrency exchanges also utilize the token to move funds between each other to prevent having to transfer a large amount of money through uncooperative banks.
Although USDT’s use is prominent in the crypto markets, it has had its controversies—including mistakenly minting $5 billion USDT while having a chain swap last weekend.
A long-standing issue is that Tether has never publicly revealed a full accounting audit to guarantee that its coin is backed by USD, as it asserted for a long time. Its lawyer recently admitted that roughly only 74 percent of USDT was backed by fiat equivalents as of April 30.
Its sister company, Bitfinex, has also made news when it claims the token has been utilized to prop up bitcoin’s price.
On the other hand, the New York Attorney General’s office has argued that Bitfinex lost $850 million and discreetly used funds from Tether to cover the losses. It also said that Bitfinex had done business in the state without a license.