Binance announced that it has completed the integration of USDT on the Polkadot network. The post announcing the integration said that deposit and withdrawal of USDT have been activated on Polkadot.
In a reaction to the announcement, the Polkadot team wrote in a Twitter post that this is great news for the Polkadot ecosystem.
Increase in USDT adoption on Polkadot
Binance is the leading centralized exchange, and with the support for USDT deposits and withdrawals on Polkadot, it is anticipated that the adoption of the stablecoin in the Polkadot ecosystem will increase.
USDT is the stablecoin of choice for most cryptocurrency users. The confidence that people have in the stablecoin stems from the fact that it is backed by Tether’s reserves.
More liquidity for Polkadot ecosystem
The release from Polkadot said that having USDT on the Polkadot network brings user friendliness to its transactions and wider adoption by the Polkadot community.
The post said,
“Additionally, Polkadot users and dapps can conveniently access this popular stablecoin, enhancing liquidity across the ecosystem.”
The statement said that users who want to bring USDT to the Polkadot blockchain have to withdraw them to their Statemint from Binance after duly making provision for fees in DOT.
Binance has many users. This means that a large amount of tether will be minted on the Polkadot blockchain following the integration.
In a related post, HydraDX, the liquidity protocol on Polkadot, wrote about the development and gave some insights into how users in the Polkadot community can benefit from the liquidity of USDT. It highlighted the fact that, with a supply of $83 billion, it is the most liquid stablecoin in the coin market. It is also the third-most capitalized digital asset.
A step to a reliable stablecoin
The post added:
“In 2022, USDT came to Statemint (Polkadot’s asset hub), which brought our ecosystem one step closer to having a reliable native stablecoin. However, the supply of native USDT on Statemint remained low, mainly due to the fact that it was never listed on a big CEX,” the statement said,
The listing by Binance is expected to boost the amount of USDT. Currently, there is just under 8 million USDT on the Polkadot StateMint.