Tether and rhino.fi just lately introduced a strategic collaboration between the 2 firms to enhance the consumer expertise of USDT customers within the DeFi ecosystem. The stablecoin issuer introduced this in a January 16 weblog put up on Tether.to. The businesses hope the partnership will improve cross-chain transactions and facilitate quick access to the USDT stablecoin.
This partnership comes amid elevated scrutiny of the USDT stablecoin by the United Nations Workplace on Medicine and Crime, because the committee just lately launched a report indicting the stablecoin of facilitating illicit financing and cash laundering in Southeast Asia.
The brand new alliance with rhino.fi comes as no shock, because the latter developed from a former sister firm. Now, rhino.fi operates as a self-custodial trade that distributes consumer tokens throughout a number of open-source sensible contracts.
Tether Seeks Wider DeFi USDT Adoption
The Tether-rhino.fi collaboration will expectedly allow simpler USDT entry to Layer 1 (L1) and Layer 2 (L2) blockchains, a feat at present elusive from the number one stablecoin. Rhino at present helps 16 blockchains, together with Ethereum, Avalanche, and Polygon. The deal ought to facilitate an enlargement of the attain of the USDT token throughout a number of blockchains.
Whereas commenting on the alliance, Will Harborne, CEO of rhino.fi described USDT because the stablecoin with the broadest adoption for real-world use instances. He additionally talked about how the collaboration will assist the presence of the stablecoin within the DeFi area by making it out there throughout a number of chains.
Additionally commenting on the deal by way of a press release, Paolo Ardoino, CEO of Tether, expressed pleasure and optimism in regards to the potential of the collaboration and what the longer term holds for USDT within the DeFi area.
“We’re enthusiastic about this strategic collaboration with rhino.fi because it represents a major step in increasing the accessibility, effectivity, and utility of USDT throughout numerous blockchain ecosystems,” the Tether CEO stated on the Tether.to web site.
The statements from each CEOs made it abundantly clear that the alliance goals to boost the presence of USDT on completely different blockchains. Curiously, neither CEO talked about advantages for rhino.fi, and by all indications, there will not be a lot in it for them (so it appears).
Why the Tether-rhino.fi Partnership was All the time within the Works
Recall that rhino.fi was previously DiversiFi, additionally Ethfinex, a splinter of Bitfinex, the father or mother firm of the stablecoin issuer. When Ethfinex separated from its father or mother Bitfinex with intentions to create a ‘trustless’ crypto trade, it rebranded to DiversiFi. Moreover, the agency maintained a detailed working relationship with its former father or mother firm till its current rebrand to rhino.fi.
With the brand new and largely one-sided alliance between Tether, the Bitfinex flagship firm, and its former splinter firm, rhino.fi observers have began theorizing in regards to the broadly publicized splinter, with rumors indicating the obverse. Whereas DiversiFi, and later rhino.fi later operated as a separate firm, the agency maintained ties with Bitfinex and all the time left the potential for rejoining at a later date.
That idea sounds far-fetched, nevertheless it will not be removed from the reality. The partnership with rhino.fi requires months and perhaps even years of planning. There was no indication from Rhino per needs in return for facilitating entry to quite a few blockchains.
What to Anticipate From the Deal
Rhino.fi might have already got a blockchain bridge prepared, permitting current customers to port their USDT tokens throughout completely different blockchains effortlessly. It ought to take rhino.fi a couple of extra weeks to finalize the bridge, however the perceived underground collaboration between the 2 firms earlier than the announcement made that pointless.
Aside from the bridge, USDT customers can count on a slew of options to boost their expertise throughout completely different blockchains, because of the partnership. It’s possible you’ll wish to be careful for future bulletins from both (or each) firms to see what the brand new alliance would imply for customers.
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 current report for facilitating ‘illicit financing and cash laundering’ in Southeast Asia.
Tether has responded to the report, accusing the United Nations of willfully ignoring its important strides in abolishing crypto-related crime. The stablecoin issuer additionally referred to as for elevated blockchain training for UN officers to drive knowledgeable regulatory discussions and abolish cybercrime.
