Stablecoin issuer Tether has revealed its decision to discontinue the Bitcoin Omni Layer version, citing waning user interest.
This particular iteration of Tether holds historical significance as one of the earliest stablecoins to be introduced.
Alongside the Bitcoin version, Tether also plans to halt operations for its Bitcoin Cash and Kusama versions, as communicated through an announcement on August 17.
Tether’s announcement clarified that moving forward, there will be no issuance of new Tether tokens on the Bitcoin Omni Layer, Bitcoin Cash, or Kusama platforms.
However, the redemption process will remain accessible for at least a year, and the company will provide updates before the end of that period regarding the procedure for redemptions beyond it.
The Bitcoin Omni Layer functions as a smart contract system situated atop the Bitcoin blockchain. Initially referred to as “Mastercoin,” this system was launched in July 2013, a full two years ahead of Ethereum.
Tether’s release on the Omni Layer in October 2014 marked a pivotal moment as it became the first stablecoin on this platform.
Over time, it ascended to become the leading stablecoin by market capitalization, surpassing predecessors such as BitUSD and NuBits.
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In recognizing the historical role played by Omni Layer Tether, Tether’s August 17 statement expressed appreciation for the contributions and innovations of the team behind the platform.
This acknowledgment was balanced with the acknowledgement of challenges faced by the Omni Layer due to the lack of popular tokens and the availability of USDT on alternative blockchains.
These challenges prompted exchanges to opt for other transport layers over Omni, ultimately diminishing the usage of USDT Omni and compelling Tether to cease its issuance.
Tether did, however, leave the door open for the potential revival of the Omni Layer version should usage of the platform experience a resurgence.
Additionally, the company revealed that it is in the process of developing a new Bitcoin smart contract system named “RGB.”
Upon its completion, Tether intends to reintroduce the token in an RGB version, thereby re-establishing its presence on the Bitcoin blockchain.
As the stablecoin landscape intensifies in 2023, Tether faces increased competition to maintain its dominance.
The release of PayPal’s PYUSD on August 7 and Binance’s listing of FDUSD on July 26 have added to the mounting pressure on Tether’s standing.
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