Tether Stops Support for Bitcoin Layer Omni Citing Lack of Demand
Back in 2014, Tether embarked on its journey by adopting Omni as its pioneering transport layer.
Tether, the eminent stablecoin issuer, has unveiled its strategic decision to phase out its association with Omni, a crucial Bitcoin layer that has facilitated seamless USDT transfers since its inception. In addition, Tether will gracefully step away from supporting the Kusama (KSM) and Bitcoin Cash (BCH) SLP implementations, as confirmed through their official announcement.
Omni operates as a sophisticated software layer ingeniously integrated atop the Bitcoin blockchain framework. Its inception aimed to elevate the inherent capabilities of the Bitcoin blockchain by endowing it with the remarkable functionalities of smart contracts.
Throughout its evolutionary path, the Omni Layer encountered an array of formidable challenges arising from the constrained adoption of its native tokens and the prevalent accessibility of USDT on alternative blockchain platforms. As a consequence of these dynamics, various exchanges shifted their preference towards alternative transport layers, resulting in a gradual wane of USDT utilization within the Bitcoin ecosystem via the Omni Layer. This crucial aspect is highlighted in Tether's announcement, where they elucidate the multifaceted reasons behind their strategic shift.
Tether stands as an illustrious exemplar in the realm of stablecoins, bearing a commanding market capitalization of $82 billion. Within this colossal valuation, a notable $240 million worth of tokens are emblematic of its presence on the Omni layer. Moreover, Tether's transparency report indicates that the platform has extended its reach to the realms of Kusama and Bitcoin Cash, with $1.4 million and $980,000 worth of tokens respectively.
The unfolding changes are meticulously outlined within Tether's comprehensive plan. As of August 17, the issuance of USDT on the Omni, Kusama, and Bitcoin Cash platforms will be gracefully brought to a halt. It's noteworthy that while new issuances conclude, the process of redemptions will gracefully persist for a span of the ensuing 12 months, underscoring Tether's commitment to a seamless transition for its valued users and stakeholders.