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Tether undergoes strategic transformation! Ceases issuing USDT on three blockchains

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Tether undergoes strategic transformation! Ceases issuing USDT on three blockchains

The leading stablecoin issuer Tether announced the suspension of USDT issuance on three underutilized blockchains, namely Omni Layer, BCH-SLP, and Kusama. Following this adjustment, the number of blockchains supported by USDT will decrease from 14 to 11.

Tether Suspends USDT Issuance on Three Blockchains

According to an announcement by Tether, the decision to integrate USDT into specific blockchains was driven by community interest. However, if a blockchain lacks sustained attention and does not show signs of recovery, supporting it becomes inefficient and may pose risks in terms of security and regulatory compliance.

Therefore, Tether has decided to undergo a strategic transition and will cease support for the Omni Layer, BCH-SLP, and Kusama blockchains. The following are the processes during the transition period:

  1. Effective immediately, Tether will stop minting USDT-Omni, USDT-Kusama, and USDT-BCHSLP.
  2. For at least the next 12 months, Tether will continue to redeem USDT-Omni, USDT-Kusama, and USDT-BCHSLP as usual.
  3. Users can swap their USDT-Omni, USDT-Kusama, and USDT-BCHSLP for assets on platforms that support these chains, such as Bitfinex.

According to Tether's data, USDT is currently issued on 14 chains, which will be reduced to 11 in the future.

Tether: Committed to Developing RGB

Although Tether has made the above decisions, it does not mean that USDT will permanently leave these chains. For example, in the case of the Omni Layer, if there is an increase in the usage of its DEX and token issuance protocols, there is a possibility of reissuing on Omni.

Furthermore, Tether has stated that they are currently focused on developing RGB. RGB is a client-side state verification and smart contract system that operates on Bitcoin's L2 and L3, providing better scalability on L1 and the Lightning Network.

Tether believes that once USDT is enabled on RGB, the world will witness its presence on another powerful and scalable layer of the Bitcoin ecosystem.