Tether to expand to operate on Liquid Network Sidechain

A new version of the widely used but controversial stablecoin (USDT) will be launched on Blockstream's Liquid Network.

Tether is now running on other sidechains of the Bitcoin blockchain. Although Tether traditionally used the Omni Layer of Bitcoin, and as reported earlier, USDT has gradually been moving to the Ethereum blockchain. However, according to their announcement, Tether has begun expanding to other blockchain protocols, such as the Liquid Network, this month.

The Liquid Network was introduced by San Francisco startup Blockstream, describing it as an "innovative sidechain on the Bitcoin network that facilitates faster Bitcoin transactions between businesses and individuals, with the ability to scale." The primary goal of this technology is to speed up settlement times, enhance transaction confidentiality, and tokenize various assets. Unlike the Lightning Network designed for micropayments, Liquid Network targets large institutions and exchanges.

According to the announcement, Tether on the Liquid chain, known as Liquid USDT, will immediately be made available for deposits and withdrawals on Bitfinex.

Furthermore, it is reported that Liquid's developers are working on supporting Liquid USDT on other affiliated cryptocurrency exchanges, including OKEX, OKCoin, BTSE, TCTrader/BtcTurk, RenrenBit, and Sideshift AI.

Tether states that this move will provide lower counterparty risk for those conducting OTC trades, where OTC refers to over-the-counter trading, which occurs outside major exchanges. Additionally, the faster freeze times offered by Liquid will allow investors to quickly transfer fiat currencies between exchanges, enabling more efficient arbitrage trading.

Tether and Bitfinex's CTO, Paolo Ardoino, commented:

Deploying Tether on the Liquid Network was a natural decision given the excellent work the Blockstream team has been doing. Issuing stablecoins and various other digital assets under a single blockchain platform makes a lot of sense and significantly improves industry efficiency, allowing traders to manage all assets from a single wallet application.

Blockstream's CSO, Samson Mow, also mentioned:

The addition of Tether is a significant milestone in enhancing the utility of the Liquid Network. With the latest developments in the Liquid ecosystem, traders can now achieve some really cool things, such as direct exchanges for OTC, ultra-fast arbitrage between exchanges, and Tether custody in Blockstream Green.

As reported earlier, this is the sixth sidechain where Tether is being deployed, including Ethereum, EOS, Tron, Omni, Algorand, and the Liquid Network mentioned in this article.

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