Tether and rhino.fi recently announced a strategic collaboration between the two companies to improve the user experience of USDT users in the DeFi ecosystem. The stablecoin issuer announced this in a January 16 blog post on Tether.to. The companies hope the partnership will enhance cross-chain transactions and facilitate easy access to the USDT stablecoin.
This partnership comes amid increased scrutiny of the USDT stablecoin by the United Nations Office on Drugs and Crime, as the committee recently released a report indicting the stablecoin of facilitating illicit financing and money laundering in Southeast Asia.
The new alliance with rhino.fi comes as no surprise, as the latter evolved from a former sister company. Now, rhino.fi operates as a self-custodial exchange that distributes user tokens across several open-source smart contracts.
Tether Seeks Wider DeFi USDT Adoption
The Tether-rhino.fi collaboration will expectedly enable easier USDT access to Layer 1 (L1) and Layer 2 (L2) blockchains, a feat currently elusive from the number 1 stablecoin. Rhino currently supports 16 blockchains, including Ethereum, Avalanche, and Polygon. The deal should facilitate an expansion of the reach of the USDT token across multiple blockchains.
While commenting on the alliance, Will Harborne, CEO of rhino.fi described USDT as the stablecoin with the broadest adoption for real-world use cases. He also mentioned how the collaboration will help the presence of the stablecoin in the DeFi space by making it available across multiple chains.
Also commenting on the deal via a statement, Paolo Ardoino, CEO of Tether, expressed excitement and optimism about the potential of the collaboration and what the future holds for USDT in the DeFi space.
“We’re excited about this strategic collaboration with rhino.fi as it represents a significant step in expanding the accessibility, efficiency, and utility of USDT across various blockchain ecosystems,” the Tether CEO said on the Tether.to website.
The statements from both CEOs made it abundantly clear that the alliance aims to enhance the presence of USDT on different blockchains. Interestingly, neither CEO mentioned benefits for rhino.fi, and by all indications, there may not be much in it for them (so it seems).
Why the Tether-rhino.fi Partnership was Always in the Works
Recall that rhino.fi was formerly DiversiFi, also Ethfinex, a splinter of Bitfinex, the parent company of the stablecoin issuer. When Ethfinex separated from its parent Bitfinex with intentions to create a ‘trustless’ crypto exchange, it rebranded to DiversiFi. Additionally, the firm maintained a close working relationship with its former parent company until its recent rebrand to rhino.fi.
With the new and largely one-sided alliance between Tether, the Bitfinex flagship company, and its former splinter company, rhino.fi observers have started theorizing about the widely publicized splinter, with rumors indicating the obverse. While DiversiFi, and later rhino.fi later operated as a separate company, the firm maintained ties with Bitfinex and always left the possibility of rejoining at a later date.
That theory sounds far-fetched, but it may not be far from the truth. The partnership with rhino.fi requires months and maybe even years of planning. There has been no indication from Rhino per wants in return for facilitating access to numerous blockchains.
What to Expect From the Deal
Rhino.fi may already have a blockchain bridge ready, allowing existing users to port their USDT tokens across different blockchains effortlessly. It should take rhino.fi a few more weeks to finalize the bridge, but the perceived underground collaboration between the two companies before the announcement made that unnecessary.
Apart from the bridge, USDT users can expect a slew of features to enhance their experience across different blockchains, thanks to the partnership. You may want to watch out for future announcements from either (or both) companies to see what the new alliance would mean for users.
Why The Rhino.fi Alliance is a Win
The strategic partnership comes amid a row between the UNODC and Tether over criticism of the USDT stablecoin in a recent report for facilitating ‘illicit financing and money laundering’ in Southeast Asia.
Tether has responded to the report, accusing the United Nations of willfully ignoring its significant strides in abolishing crypto-related crime. The stablecoin issuer also called for increased blockchain education for UN officials to drive informed regulatory discussions and abolish cybercrime.
