Tether Withdraws Support for Omni Layer: What You Need to Know
Yesterday, Tether, the world’s largest stablecoin issuer, announced that it will no longer offer support for the Omni layer, a layer built on top of the Bitcoin network. This decision was made due to the lack of demand and the high costs associated with maintaining support for the layer. As a result, users will no longer be able to mint USDT on Omni and transfer the stablecoin at low cost. The same fate has also befallen the Kusama and Bitcoin Cash blockchains. Here are the key points to know:
- Tether stops work on the historic Bitcoin Omni layer
- No new minting of USDT on Omni
- Redeeming and swapping on exchanges supporting the chain continue
- Tether’s decision is motivated by the lack of popularity and low usage of the layer
- Tether remains consistent and transparent with its goals and guidelines
Tether’s withdrawal from Omni is a strategic transition to ensure optimal user experience and sustainable operations. Although there is a possibility of reconsidering USDT’s return to Omni in the future, Tether is actively working on the development of RGB, a system that operates on second and third layers of Bitcoin. The decision to stop minting new USDT also applies to Kusama and Bitcoin Cash, which have shown limited traction and capital locked compared to other networks. The majority of USDT supply is concentrated on Ethereum and Tron, comprising 99% of the coin’s market capitalization.
Hot Take
Tether’s withdrawal from Omni, Kusama, and Bitcoin Cash reflects the company’s commitment to efficiency and user experience. By focusing on networks with higher demand and usage, Tether can better serve the crypto community. This move also highlights the importance of scalability and development of second and third layers of Bitcoin, as seen in Tether’s work on RGB. While some users may be disappointed by the discontinuation of support for these networks, it ultimately benefits the stability and growth of the stablecoin ecosystem.
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