In the past, Tether (USDT) has been operating on Bitcoin’s Omni Layer, but it now seems like the stablecoin is expanding to other blockchain protocols. According to an announcement made on July 29, Tether has begun running on BlockStream’s Liquid Network, which is a Bitcoin sidechain blockchain.
Tether is on the Liquid Network
The addition of the stablecoin to Liquid Network’s sidechain was unveiled in October last year, and it aimed to provide traders and firms extra features that were not available through the original Tether platform. Traders will have access to Liquid-based Tether (Liquid USDT), which will be available for withdrawals and deposits on Bitfinex.
Equally, the Liquid Network developers are enhancing the capability of other crypto exchanges such as BTSE, OKCoin, OKEx, Sideshift AI, RenrenBIyt, and BTCTrader to support Liquid USDT. The liquid is an additional layer to the Bitcoin platform offering traders the possibility of transactions of large volumes at enhanced speed. During the launch, various firms, including Bitfinex, signed up to offer support in managing and transacting on the network through its Bitcoin-based L-BTC token.
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Liquid Enhancing Swaps Between Liquid BTC and Liquid USDT
The entry of Tether into the network makes it possible to carry out atomic swaps between Liquid USDT and Liquid BTC. The company has indicated that this will minimize the counterparty risk for traders executing OTC trades. Traders will be able to make faster fiat transfers between exchanges because of Liquid’s enhanced block times, which will arbitrage trades more efficiently.
Cryptocurrency holders will be allowed to store their Liquid USDT in Blockstream Green, which is the company’s digital wallet, and the tokens can be stored for some time before the trader decides to move them. In March, the wallet app was upgraded, and it now offers extra features such as privacy over the Tor network and multi-signature security.
Paolo Ardoino, the CTO at Tether and Bitfinex, indicated that it was easy to deploy Tether in the Liquid Network because of the great work that the BlockStream team is doing.
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