Tether, the renowned stablecoin issuer, has unveiled a pivotal change in its approach to blockchain support. In a bid to resonate with the evolving demands of the crypto community and uphold a fortified blockchain ecosystem, Tether will cease support for its tokens on the Kusama, Bitcoin Cash SLP, and notably, the Omni Layer platforms.
Historically, the Omni Layer, constructed atop the Bitcoin blockchain, was instrumental for Tether. It marked the company’s initial foray into transport layers in 2014. “The Omni Layer, built on top of Bitcoin, played a crucial role in Tether’s early journey, and we acknowledge the contributions and innovations the team has made to the crypto landscape,” the company stated in its announcement.
However, the Omni Layer encountered hurdles over time, primarily due to the lack of widespread tokens and the surge of USDT availability on alternative blockchains. This trend led to a shift among exchanges, favoring other transport layers and resulting in diminished USDT activity on the Omni Layer.
Despite these challenges, Tether remains optimistic about the Omni Layer’s potential, especially its capabilities in decentralized exchanges and token issuance, encompassing NFTs. The company hinted that a renewed interest in the Omni Layer might prompt them to revisit the idea of issuing USDT on Bitcoin via this layer.
Tether’s commitment to the Bitcoin ecosystem remains unwavering. They are at the forefront of RGB’s development, a state and smart contracts system validated on the client-side, designed for Bitcoin’s Layer 2 and 3. “Upon the activation of USDT on RGB, the global community will experience USDT on an advanced and scalable Bitcoin layer,” Tether’s announcement elaborated.
Starting from the 17th of August 2023, Tether will halt the minting of USDT-Omni, USDT-Kusama, and USDT–BCHSLP. However, they will continue to honor redemptions for these tokens for a minimum of the next 12 months. Additionally, users have the option to exchange these tokens for other chains on compatible platforms.
The crypto realm in 2023 is witnessing a surge in stablecoin competition, with new entrants vying for a share of Tether’s market dominance. Recent launches include PayPal’s stablecoin and First Digital USD. In Q2 2023, Tether reported impressive financial results, earning over $1 billion.
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