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Tether, the agency behind the widely-used stablecoin USDT, has introduced its resolution to regulate its strategic priorities. This transfer results in the discontinuation of assist for blockchain platforms Omni Layer, Kusama and Bitcoin Cash SLP which have been a part of its ecosystem.
Today #Tether publicizes the ending of the assist of three blockchains $USDt: OmniLayer, BCH-SLP and Kusama.
Customers will be capable of proceed to redeem and swap $USDt tokens (to a different of the various supported blockchains), however Tether will not subject any new further $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, making certain that USDT stays useful throughout numerous platforms. Factors corresponding to safety, regulatory concerns and general person 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 adjustments, probably the most vital is Tether’s resolution to withdraw its assist for the Omni Layer. This platform, integral to Tether’s early days since 2014, has skilled diminishing person engagement over time, prompting Tether to rethink its affiliation. This strategic resolution additionally impacts different platforms, specifically 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 acknowledges the potential within the Omni Layer, particularly its capabilities associated to decentralized exchanges and token issuance. While present metrics drove the choice, the corporate holds a cautiously optimistic view of probably 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 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 entrance, Tether has acknowledged it can halt the minting of USDT on Omni, Kusama, and BCH-SLP instantly. However, customers can proceed redeeming USDT from these platforms for not less than the subsequent yr.