In an announcement today, leading stablecoin issuer, Tether halted its support for Bitcoin Cash SLP, Kusama, and Omni Layer implementations on its platform. According to the stablecoin issuer, it took the drastic decision to protect the interest of its community in terms of security, customer support, compliance and regulatory insight.
Tether reflected on how Omni played a significant role in the early journey of Tether. Recall that the software layer was the first Bitcoin layer used for USDT transfers since 2014. However, after taking the decision to discontinue its support for it, Tether acknowledged the impact and contributions of the Omni team to the crypto ecosystem.
Tether admitted that Omni Layer has in the past few years faced various challenges caused by lack of popular tokens and availability of USDT on other blockchains. Therefore, this situation made many crypto exchanges to go for alternative transport layers, thereby resulting in a massive decline in USDT usage on Bitcoin using the Omni layer. With this development, Tether said it has no other choice than to halt its support for the layer.
However, despite discontinuing its support for the Omni, Tether said it still believes in its prospects. The stablecoin issuer hinted that it might reconsider Omni layer in its future endeavors. This, according to the stablecoin issuer is due to the increasing utilization of the layer’s decentralized exchange and its token issuance protocol.
Tether aiming to leverage reliable decentralized blockchain solutions
Nevertheless, Tether affirmed its commitment to leveraging the most secure, audited, and decentralized blockchain solutions. Also, it revealed that its team is contributing immensely to the development of RGB. Recall that the RGB is a client-side validated state and smart contract system operating on Layer 2 and 3 of the Bitcoin ecosystem. The project thrives on-chain (Bitcoin L1) and also on the Lightning Network, with exceptional scalability.
In June, Binbits reported Tether’s partnership with popular cryptocurrency exchange, Bitfinex. The collaboration allowed the duo to provide public grants to support the open-source development of Qubes OS. As revealed, Tether and Bitfinex raised about 100,000 USD to support data security and privacy in the blockchain industry. Also, they invested in projects that support the development of secure and decentralized technologies.