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Tether Adopts New Path: USDT Minting Ceases On Select Chains

Tether Adopts New Path: USDT Minting Ceases on Select Chains

Key Points:

Tether discontinued creating USDT on Kusama, Omni, and BCH chains on August 17, 2023.
Redemptions for USDT on these chains remain operational for a year, with potential future changes.
The company emphasizes decentralized exchanges, NFTs, and Bitcoin’s Layer 2 development while supporting community-driven blockchain innovations.

Tether, the prominent stablecoin issuer, has unveiled a strategic shift in its support for various blockchains.

Tether Adopts New Path: USDT Minting Ceases On Select Chains 2

Starting August 17, 2023, Tether will cease the issuance of USDT on Polkadot’s Kusama test chain, Bitcoin’s Omni Layer, and Bitcoin Cash’s SLP implementation. This decision follows a meticulous evaluation of factors including community interest, security, compliance, and regulatory oversight.

Although Tether will discontinue minting USDT on these platforms, the company will continue to facilitate redemptions for USDT-Omni, USDT-Kusama, and USDT-BCH-SLP for at least the next year. Tether has indicated that potential changes and further evaluations might occur after this period.

Users holding USDT on the mentioned blockchains are encouraged to explore options on platforms that support these assets, such as Bitfinex, where swaps to alternative chains can be executed.

Despite discontinuing support, Tether remains committed to the potential of the Omni Layer and decentralized exchanges. The company believes that an increase in utilization, especially within the decentralized exchange framework and token issuance protocols like NFTs, could pave the way for a reconsideration of USDT issuance on Bitcoin through Omni.

Moreover, the company is actively contributing to the development of RGB, a cutting-edge system operating on Bitcoin’s Layer 2 and 3. This system promises scalability and innovation in digital assets, smart contracts, and digital rights.

Tether stated last week that it would create a mobile app for international settlements using USDT and XAUt payments, including direct payments, escrows, and dispute resolution using the Bitcoin Lightning Network.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.