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Tether, the agency behind the widely-used stablecoin USDT, has announced its choice to regulate its strategic priorities. This transfer results in the discontinuation of assist for blockchain platforms Omni Layer, Kusama and Bitcoin Cash SLP which were a part of its ecosystem.
Right now #Tether broadcasts the ending of the assist of three blockchains $USDt: OmniLayer, BCH-SLP and Kusama.
Clients will be capable to proceed to redeem and swap $USDt tokens (to a different of the various supported blockchains), however Tether will not challenge any new extra $USDt on these 3… https://t.co/aghLgqtSuO— Paolo Ardoino 🍐 (@paoloardoino) August 17, 2023
The foundational ethos of Tether’s operations builds a complete blockchain ecosystem, guaranteeing that USDT stays useful throughout numerous platforms. Components reminiscent of safety, regulatory concerns and general consumer expertise inform the corporate’s decision-making course of.
One facet of those choices has been the diploma of group curiosity and engagement related to every platform.
Among the many adjustments, probably the most vital is Tether’s choice to withdraw its assist for the Omni Layer. This platform, integral to Tether’s early days since 2014, has skilled diminishing consumer engagement over time, prompting Tether to rethink its affiliation. This strategic choice additionally impacts different platforms, particularly Kusama and Bitcoin Cash SLP:
“Over time, the Omni Layer confronted challenges as a result of lack of well-liked tokens and the provision of USDT on different blockchains. This led many exchanges to favor different transport layers, resulting in a decline in USDT utilization on Bitcoin utilizing the Omni Layer.”
Tether acknowledges the potential within the Omni Layer, particularly its capabilities associated to decentralized exchanges and token issuance. Whereas present metrics drove the choice, the corporate holds a cautiously optimistic view of doubtless re-engaging with Omni if metrics enhance.
In parallel, Tether is channeling its efforts towards the event of a sophisticated client-side validated system, or RGB, designed particularly for Bitcoin’s secondary and tertiary layers.
“RGB capabilities each on-chain (Bitcoin L1) and on the Lightning Community, promising unparalleled scalability. We firmly consider that RGB will usher in a brand new period for digital property, sensible contracts, and digital rights, garnering complete assist from main gamers in our trade.”
On the transition entrance, Tether has acknowledged it can halt the minting of USDT on Omni, Kusama, and BCH-SLP instantly. Nonetheless, customers can proceed redeeming USDT from these platforms for at the very least the subsequent 12 months.
