Tether Ceases USDT Issuance on Specific Blockchains Due to Lack of Traction
Tether, the entity behind the popular stablecoin USDT, has announced the discontinuation of USDT issuance on certain blockchains including Kusama, Bitcoin Cash SLP, and Omni Layer. This decision has been attributed to the absence of substantial usage and a prolonged lack of traction on these blockchains. The company emphasized that continuing support for blockchains with minimal activity could compromise security and oversight. Tether will, however, maintain a practice of purchasing tokens from these networks for a minimum duration of one year. Users also retain the option to exchange their coins for USDT through various exchanges operating on different blockchains.
Shift in USDT Issuance:
Tether’s latest move to halt USDT issuance on the Kusama, Bitcoin Cash SLP, and Omni Layer blockchains stems from a strategic reevaluation of blockchain support. Company spokespersons underscored that sustained low usage coupled with negligible signs of recovery in usage indicators prompted the decision. In light of efficiency concerns and the paramount importance of security and oversight, Tether has made the determination to curtail support for these particular blockchains in terms of USDT issuance.
Ensuring Efficiency and Security:
Company executives clarified that the maintenance of support for blockchains struggling to gain traction for an extended period of time could become increasingly inefficient. More importantly, it could compromise the overarching aspects of security and oversight – critical components in the world of digital assets and transactions. This underscores Tether’s commitment to upholding the highest standards of operational integrity within the blockchain space.
Continued Token Purchase and Exchange:
While USDT issuance will be discontinued on the specified blockchains, Tether has confirmed its intention to continue purchasing tokens from these networks for a minimum of one year. This commitment showcases the company’s dedication to its existing users and the broader blockchain community. Furthermore, users on these blockchains have the option to seamlessly exchange their coins for USDT through established exchanges on alternate blockchains.
Reflection on Omni Protocol:
The Omni project holds historical significance as the initial protocol employed by Tether to issue stablecoins on the Bitcoin network. Even though USDT issuance on Omni is being terminated, the company has not ruled out the possibility of revisiting this project in the future. This contemplation reflects Tether’s strategic approach to adapting its operations based on evolving market dynamics.
Tether’s Ongoing Involvement in Development:
Tether’s representatives have emphasized their ongoing engagement in the realm of blockchain development. Notably, the company remains actively involved in advancing RGB smart contracts. These smart contracts offer the potential to build intricate structures, including two and three-tier systems, on top of the Bitcoin blockchain. This dedication to innovation and exploration underscores Tether’s commitment to remaining at the forefront of blockchain advancements.
Tether’s decision to cease USDT issuance on specific blockchains serves as a testament to the company’s commitment to operational efficiency, security, and strategic adaptation. By discontinuing issuance on blockchains with limited traction, Tether is prioritizing the integrity of its services and upholding stringent oversight standards. As the blockchain landscape continues to evolve, Tether’s focus on innovation, user-centricity, and operational excellence positions it as a pivotal player in the digital asset ecosystem.