Stablecoin Tether Discontinues Bitcoin, Bitcoin Cash, and Kusama Versions Due to Lack of Interest

No More Tether Tokens on Bitcoin Omni Layer, Kusama, or Bitcoin Cash

Tether, the issuer of the popular stablecoin USDT, has announced that it will be discontinuing its Bitcoin Omni Layer version, as well as the Bitcoin Cash and Kusama versions, citing a lack of user interest. This comes as Tether faces increasing competition from other stablecoins, challenging its position as the dominant player in the market.

The announcement, made on August 17, stated that no new Tether tokens will be issued on the Bitcoin Omni Layer, Kusama, or Bitcoin Cash going forward. However, redemptions will still be available for at least a year, with further announcements to come regarding how the company will handle redemptions after that point.

Milestone in Crypto history

The Bitcoin Omni Layer, a smart contract system built on top of the Bitcoin blockchain, was originally released in July 2013, two years before Ethereum. Tether Omni Layer, the first stablecoin released on the system in October 2014, quickly became the highest market cap stablecoin, surpassing its predecessors BitUSD and NuBits.

Tether acknowledged the important historical role played by the Omni Layer in the crypto landscape, stating, "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."

Challenges and Future Plans

However, Tether revealed that the Omni Layer faced challenges due to the lack of popular tokens and the availability of USD₮ on other blockchains. Exchanges started using alternative transport layers instead of Omni, leading to a decline in USDT Omni usage and ultimately prompting the decision to discontinue issuance on the Bitcoin Omni Layer.

Tether did mention that it would reconsider reissuing the Omni Layer version if usage of Omni picks up. Additionally, the team is working on a new Bitcoin smart contract system called "RGB," and plans to reissue Tether in an RGB version once it is completed, which would bring Tether back to the Bitcoin blockchain.

Increased Competition

Competition among stablecoins has been intensifying in 2023, posing a challenge to Tether's dominance. Paypal released its own stablecoin, Paypal US Dollar (PYUSD), on August 7, while Binance listed First Digital USD (FDUSD) on July 26.