Drift secures $148M from Tether to recover $270M lost in exploit, switching to USDT stablecoin.

Drift Protocol, a decentralized perpetual futures exchange on Solana, received up to $147.5 million in funding from Tether and partners to recover user funds after a $270 million exploit by a North Korea-linked group. The funding will support relaunching Drift with Tether's USDT as its core stablecoin, replacing Circle's USDC, and includes revenue-linked credit and liquidity support to cover approximately $295 million in losses over time. This move highlights the stablecoin competition between USDT and USDC, with Tether aiming to strengthen its market position through Drift's transition. Drift plans to use the funds to incentivize users, reduce fees, and restore trading depth at relaunch.