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Tether, the firm behind the widely-used stablecoin USDT, has announced its decision to adjust its strategic priorities. This move leads to the discontinuation of support for blockchain platforms Omni Layer, Kusama and Bitcoin Cash SLP that have been part of its ecosystem.
Today #Tether announces the ending of the support of 3 blockchains $USDt: OmniLayer, BCH-SLP and Kusama.
Customers will be able to continue to redeem and swap $USDt tokens (to another of the many supported blockchains), but Tether won’t issue any new additional $USDt on those 3…
— Paolo Ardoino 🍐 (@paoloardoino) August 17, 2023
The foundational ethos of Tether’s operations builds a comprehensive blockchain ecosystem, ensuring that USDT remains functional across various platforms. Factors such as security, regulatory considerations and overall user experience inform the company’s decision-making process.
One aspect of these decisions has been the degree of community interest and engagement associated with each platform.
Among the changes, the most significant is Tether’s decision to withdraw its support for the Omni Layer. This platform, integral to Tether’s early days since 2014, has experienced diminishing user engagement over time, prompting Tether to reconsider its association. This strategic decision also affects other platforms, namely Kusama and Bitcoin Cash SLP:
“Over the years, the Omni Layer faced challenges due to the lack of popular tokens and the availability of USDT on other blockchains. This led many exchanges to favor alternative transport layers, leading to a decline in USDT usage on Bitcoin using the Omni Layer.”
Tether recognizes the potential in the Omni Layer, especially its capabilities related to decentralized exchanges and token issuance. While current metrics drove the decision, the company holds a cautiously optimistic view of potentially re-engaging with Omni if metrics improve.
In parallel, Tether is channeling its efforts toward the development of an advanced client-side validated system, or RGB, designed specifically for Bitcoin’s secondary and tertiary layers.
“RGB functions both on-chain (Bitcoin L1) and on the Lightning Network, promising unparalleled scalability. We firmly believe that RGB will usher in a new era for digital assets, smart contracts, and digital rights, garnering comprehensive support from major players in our industry.”
On the transition front, Tether has stated it will halt the minting of USDT on Omni, Kusama, and BCH-SLP immediately. However, users can continue redeeming USDT from these platforms for at least the next year.