Tether to Stop Issuing New Tokens on the Bitcoin Omni Layer
- Tether has announced that it will stop issuing new tokens on Bitcoin Cash, Kusama, and the Bitcoin Omni Layer.
- Chief Technology Officer Paolo Ardoino confirmed that users will be able to swap tokens for tokens on other blockchains.
- Redemptions will remain active for at least a year.
- Further announcements will decide the court of redemptions after the one-year period.
Tether, the firm behind the largest stablecoin by market capitalization, has confirmed that it will stop issuing its stablecoin on the Bitcoin Omni Layer, a software layer built on top of the world’s largest blockchain network. Interestingly, this Bitcoin (BTC) version of the USDT stablecoin was one of the first ever stablecoins created.
As per the official announcement on August 17, the Bitcoin Cash (BCH) and Kusama (KSM) versions of the stablecoin will also be shut down. Tether Chief Technology Officer, Paolo Ardoino, also acknowledged his firm’s decision, stating that holders on these blockchains will be able to swap their USDT for any other supported blockchain.
Going forward, no new additional Tether tokens on the Bitcoin Omni Layer, Kusama, or Bitcoin Cash will be issued, and Ardoino confirmed that redemptions will remain active for at least a year so that all funds are safe. Moreover, the firm will issue further announcements before the end of the year regarding redemptions after the one year period.
The Bitcoin Omni Layer has played an important role in the crypto sector. It was released two years prior to Ethereum in July 2013 and was originally called “Mastercoin.” The Omni Layer Tether was the first stablecoin released on the network in October 2014 and quickly became the highest market cap stablecoin of that time, surpassing earlier stablecoins such as BitUSD and NuBits.
“We understand the significance of this decision, particularly for Omni, as it was the first transport layer that Tether used in 2014. The Omni Layer, built on top of Bitcoin, played a crucial role in Tether’s early journey, and we acknowledge the contributions and innovations the team has made to the crypto landscape,” said Tether.
According to the Tether development team, the Omni Layer “faced challenges due to the lack of popular tokens and the availability of USDT on other blockchains.”
As reported earlier by BitcoinWisdom, Tether is set to debut new mining software for mining machines, including WhatsMiner, AvalonMiner, and Antminer. The Bitcoin mining software seeks to enhance the efficiency of Bitcoin mining operations, as per CTO Ardoino.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
