Tether has taken another stride in expanding its stablecoin ecosystem by launching USDt on the Kaia blockchain, a move that integrates its flagship stablecoin into Line’s vast network of over 196 million monthly users. Announced on May 7, this collaboration with Line Next—the Web3 arm of Japan’s popular messaging platform—offers a seamless experience for users to interact with digital assets within the familiar interface of Line’s messaging app.
A New Frontier for Stablecoin Adoption
The integration of USDt into Line’s messenger-based Mini DApp ecosystem and self-custodial wallet marks a significant step in Tether’s mission to enhance stablecoin adoption across Asia. Users can now leverage USDt for various purposes, including in-app payments, cross-border transfers, and decentralized finance (DeFi) activities. Tether CEO Paolo Ardoino emphasized the importance of this expansion, stating that it underscores Tether’s commitment to fostering stablecoin adoption not just in Asia, but globally. “Through LINE NEXT’s blockchain infrastructure, over 200 million LINE users will now have a straightforward way to engage with digital assets in everyday life,” Ardoino noted. This expansion aligns with Tether’s broader strategy, as discussed in Tether’s U.S.-Focused Stablecoin Could Launch Later This Year, to diversify its stablecoin offerings across different markets.
Enhancing User Experience with Kaia
The Kaia blockchain, which powers Line’s Mini DApps, is lauded for its low-latency transactions and immediate finality—qualities that make it an ideal partner for stablecoin activities. Sam Seo, chair of the Kaia DLT Foundation, highlighted that this collaboration aims to deliver “the fastest, easiest, and most reliable” USDT experience across platforms like LINE, DeFi apps, and centralized exchanges.
Initial features available to Line users include mission-based USDT rewards within Mini DApps and peer-to-peer USDT transfers via Line’s in-app wallet. There are plans to further expand stablecoin functionality across other app layers, promising a more integrated experience for users. Youngsu Ko, CEO of Line Next, added that the stablecoin integration would provide a “dollar-based gateway” for users, making Web3 services more practical and accessible for the everyday consumer in the region.
Market Implications and Future Prospects
Tether’s USDt stands as the largest stablecoin by market capitalization, boasting a circulating supply of over 149.4 billion tokens, according to CoinMarketCap data. This strategic deployment on Kaia is expected to bolster Tether’s presence in the Asian markets, potentially driving further adoption of stablecoins for everyday transactions. This mirrors trends seen in other sectors, such as the launch of Visa and Baanx’s USDC Stablecoin Payment Cards, which aim to integrate stablecoins into mainstream financial services.
The timing of this integration is noteworthy. Just days before, on May 5, Tether minted an additional $1 billion USDt on the Tron network, boosting the total USDT on Tron to $71.4 billion. This move, combined with Tether’s recent partnership with Chainalysis to enhance compliance and monitoring, signifies Tether’s proactive approach in navigating the increasingly regulated crypto landscape.
Looking Ahead
As Tether continues to expand its reach and solidify its position in the stablecoin market, questions linger about the broader implications for the cryptocurrency industry. Will other stablecoin issuers follow suit and integrate with popular messaging platforms? And how will increased regulatory scrutiny impact Tether’s operations and growth strategies?
Only time will tell. But for now, Tether’s expansion into Line’s ecosystem presents an intriguing development in the ongoing evolution of digital finance, potentially paving the way for more widespread use of stablecoins in everyday life.
Source
This article is based on: Tether launches on Kaia, brings USDt to LINE’s 196M user ecosystem
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
