Tether Discontinues USDT Support for Omni, SLP, and Kusama

Tether Discontinues USDT Support for Three Blockchains

Tether, the stablecoin giant, has announced that it will no longer support USDT on Bitcoin’s Omni Layer, Bitcoin Cash’s Simple Ledger Protocol (SLP), and Kusama. The decision is based on the lack of significant traction and community interest in these blockchains. Tether explained that maintaining support for networks with low usage becomes inefficient and may jeopardize security and oversight. Omni, in particular, has faced challenges due to the lack of popular tokens and the preference for other layers like Ethereum and Tron. However, Tether still believes in Bitcoin’s future and plans to issue USDT on RGB, a smart contracts system leveraging Bitcoin’s base layer and lightning network.

Key Points:

Tether has discontinued USDT support for Bitcoin’s Omni Layer, Bitcoin Cash’s SLP, and Kusama.
Low traction and community interest were the reasons cited for the decision.
Omni faced challenges due to the lack of popular tokens and the preference for other layers.
Tether plans to issue USDT on RGB, a smart contracts system leveraging Bitcoin’s base layer and lightning network.
Holders of USDT on these chains can still redeem their tokens for the next 12 months.

Bitcoin’s Future With Stablecoins

Despite discontinuing support for Omni, Tether remains committed to Bitcoin. The company sees potential in RGB, which it believes will usher in a new era for digital assets, smart contracts, and digital rights. Tether is confident that RGB will receive comprehensive support from major players in the industry. While USDT mints on Omni end, users can still trade their tokens on exchanges and redeem them for the next year. Although Omni has struggled to gain adoption, there have been other initiatives for Bitcoin-based stablecoins, such as Stably’s BRC-20 token standard.

Hot Take

Tether’s decision to discontinue USDT support for three blockchains reflects the importance of community interest and traction in determining the viability of a network. The preference for other layers over Omni highlights the competitive nature of the crypto market. However, Tether’s focus on RGB shows its confidence in Bitcoin’s potential as a base layer for smart contracts and scalable solutions. This move could pave the way for further innovation and adoption of stablecoins within the Bitcoin ecosystem.