Tether, the stablecoin asset provider, today announced their integration with the recently launched Algorand protocol. Fiat-based stablecoins, such as Tether, provide a dependable on-ramp to the crypto ecosystem for retail and institutional participants alike.
The Tether team believes that further adoption of stablecoins has been hindered by the performance of the underlying blockchain technology. Specifically, the scalability and transaction finality of most blockchain platforms is insufficient to support the speed required for mainstream adoption by businesses and end-users.
The Algorand platform solves this issue with complete transaction finality and speeds in excess of 1,000 transactions per second and block completion in under 5 seconds per block. This creates new opportunities for use and development that have not existed in previous stablecoin offerings.
“Extending Tether into the Algorand ecosystem is a fantastic opportunity for us to further contribute to blockchain interoperability and collaboration. Algorand is an excellent team very much aligned with ours; we are proud to take this next step with them. We are very excited about the potential this enables for other projects in the decentralized ecosystem and we eagerly await working closely with many of them in the future.”
– Tether CTO, Paolo Ardoino
Algorand is working to pioneer public, permissionless proof-of-stake blockchain with an open-source approach. The Algorand consensus mechanism is developed to promote open participation, security, and performance within a network that is decentralized by design.
With consensus on a new block being reached as fast as the block can be propagated throughout the network, Algorand’s transaction throughput is on par with large payment and financial networks, all securely scalable to billions of users.
The Algorand Foundation says it is forward to continuing innovation and bringing new partnerships to the Algorand ecosystem.