Dive into the ever-changing world of stablecoin with Tether announcing the termination of its USDT on Bitcoin, Kusama and Bitcoin Cash. Discover the reasons and consequences of this decision, while exploring Tether’s plans for the future of its stablecoin in the blockchain ecosystem.
In the changing fabric of the crypto-currency universe, Tether, issuer of the popular stablecoin USDT, announces a significant shift by revealing the end of its support for USDT on three major blockchains: Bitcoin (BTC), Kusama (KSM) and Bitcoin Cash (BCH). A decision that raises questions about the future of stablecoin within the blockchain ecosystem.
Tether USDT, among its stablecoin peers, is renowned for its adoption across various blockchain networks. This expansion has seen it spread across no less than 15 networks, representing a total of almost $83 billion in value.
Tether, looking to the future!
However, it is becoming clear that USDT has varying levels of usage across blockchains, leading Tether to take radical action. The announcement of the end of stablecoin on Bitcoin, Kusama and Bitcoin Cash comes in response to limited usage on these specific platforms.
In the context of Bitcoin, it’s important to note that USDT relies on the Omni Layer overlay, with a current value of around $888 million. On Kusama, the amount is $3.5 million, while it rises to almost $6 million on Bitcoin Cash’s SLP protocol.
Tether justifies these choices as both difficult and strategic, highlighting the particular challenges associated with Omni Layer technology. According to Tether, many exchanges have favored transport alternatives, which has inevitably reduced the use of USDT via Omni Layer. For Tether, consistency and transparency remain essential, even if this means making delicate decisions.
However, the announcement of the end of USDT on these blockchains does not necessarily mean the end of the value of these tokens. Users will still be able to transfer their assets between compatible networks and platforms. In addition, Tether has confirmed that it will continue to support USDT on these three blockchains, at the one-to-one conversion rate, for the next 12 months.
Although USDT is about to leave the Omni Layer scene, this is not the end of the story for this stablecoin on Bitcoin. Tether appears to be looking to the future with an eye on the RGB protocol, a technology that could pave the way for decentralized finance (DeFi) on the Bitcoin blockchain. This decision illustrates Tether’s adaptive nature and its willingness to take on new challenges.
