Tether discontinues Bitcoin stablecoin, citing lack of usage

The issuer of stablecoin Tether (USDT) volition discontinue its Bitcoin (BTC) Omni Layer version, citing deficiency of involvement from users. This Bitcoin mentation of Tether was 1 of the archetypal stablecoins ever created. The Bitcoin Cash (BCH) and Kusama (KSM) versions volition besides beryllium discontinued, according to an August 17 announcement from the team.

Today #Tether announces the ending of the enactment of 3 blockchains $USDt: OmniLayer, BCH-SLP and Kusama.
Customers volition beryllium capable to proceed to redeem and swap $USDt tokens (to different of the galore supported blockchains), but Tether won't contented immoderate caller further $USDt connected those 3… https://t.co/aghLgqtSuO

— Paolo Ardoino (@paoloardoino) August 17, 2023

According to the announcement, nary caller Tether tokens volition beryllium issued connected the Bitcoin Omni layer, Kusama, oregon Bitcoin Cash going forward. Redemptions volition stay disposable for astatine slightest a year, and the institution volition contented further announcements earlier the twelvemonth has passed arsenic to however they volition grip redemptions aft that point.

The Bitcoin Omni Layer is simply a astute declaration strategy built connected apical of the Bitcoin blockchain. Originally called “Mastercoin,” it was released successful July, 2013, a afloat 2 years earlier Ethereum. Tether Omni Layer became the archetypal stablecoin to beryllium released connected the strategy successful October, 2014. It rapidly grew to beryllium the highest marketplace headdress stablecoin, surpassing earlier stablecoins specified arsenic BitUSD and NuBits.

In its August 17 announcement, Tether sought to admit the important humanities relation that Tether Omni Layer played successful crypto history, stating:

“We recognize the value of this decision, peculiarly for Omni, arsenic it was the archetypal transport furniture that Tether utilized successful 2014. The Omni Layer, built connected apical of Bitcoin, played a important relation successful Tether's aboriginal journey, and we admit the contributions and innovations the squad has made to the crypto landscape.”

Related: PayPal’s stablecoin opens doorway for crypto adoption successful accepted finance

However, the squad stated that Omni furniture “faced challenges owed to the deficiency of fashionable tokens and the availability of USD₮ connected different blockchains.” This led exchanges to usage different transport layers alternatively of Omni, which successful crook led to a diminution of USDT Omni usage and forcing the institution to extremity its issuance.

Tether claimed that it would see reissuing the Omni Layer mentation if usage of Omni picks up. They besides stated that they are moving connected a caller Bitcoin astute declaration strategy called “RGB,” and that they program to reissue Tether successful an RGB mentation erstwhile it is completed, bringing Tether backmost to the Bitcoin blockchain.

Competition betwixt stablecoins has been heating up successful 2023, challenging Tether’s dominance. Paypal released its Paypal US Dollar (PYUSD) connected August 7, and Binance listed First Digital USD (FDUSD) connected July 26.