Tether to Refocus on Major Blockchains, Ceases Support for Smaller Protocols – Coinpedia Fintech News

Tether, the largest stablecoin issuer, announced it would stop supporting several smaller blockchain protocols over the coming year. This move reflects Tether’s migration toward larger networks like Ethereum and Tron.

Specifically, Tether will cease issuing and interacting with the dollar-pegged USDT token on Omni, Kusama, and Bitcoin Cash by August 17th, 2022. Omni is a protocol layered on Bitcoin that initially enabled Tether transfers starting in 2014.

During the following year, Tether will maintain the redemption of USDT-Omni, USDT-Kusama, and USDT-BCH-SLP as per usual procedures. Beyond this initial period, Tether may assess and communicate any further adjustments.

Users also have the option to exchange USDT-Omni, USDT-Kusama, and USDT-BCH-SLP for different chains on platforms that support these particular assets, such as Bitfinex.

Tether cites a drop in Omni-based USDT usage

However, in its announcement, Tether cited declining usage of Omni-based USDT as more exchanges adopt alternative platforms. Currently, only $240 million of the $82 billion total USDT supply uses the Omni network.

Tether will continue enabling USDT redemptions on these networks for one year, giving users time to move funds. But the shift demonstrates Tether’s prioritization of higher-volume chains like Ethereum, which handles most of its activity.

Critics argue this increased centralization on a few platforms runs counter to cryptocurrency’s decentralization ethos. However, Tether claims its actions are customer-focused.

“To ensure continued capabilities…we must actively assess market demand and throughput,” the company stated. “Users should feel confident that Tether will remain responsive to market forces.”

Going forward, Tether aims to concentrate connectivity and liquidity for its USDT stablecoin on high-demand networks. While the move away from niche protocols has trade-offs, Tether asserts that this path makes USDT more accessible for its users in the long term.

Source: Read Full Article