#What will be the impact of Tether's decision on issuing USDT?
Tether has made a significant announcement regarding its operations on several blockchain networks. The company will discontinue direct issuance and redemption of its USDT stablecoin on the Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. Though users can still transfer tokens on these networks, they will no longer receive official support or redemption services from Tether.
This decision marks a departure from Tether's previous commitment to completely cease redemptions and freeze USDT on these legacy networks by September 1, 2025. Tether's leadership has underscored that this choice was informed by an extensive assessment of blockchain usage trends and engagement with community stakeholders. Over the past two years, the demand for USDT on these platforms has sharply declined, prompting Tether to allocate its resources towards more active networks that present scalability and higher usage.
Tether’s CEO highlighted a strategic shift aimed at enhancing relevance and operational efficiency in a rapidly evolving market. By ending support for these less utilized blockchains, Tether intends to sharpen its focus on emerging technologies and more viable platforms.
#How is Tether adapting to focus on growing networks?
In an effort to support advancing ecosystems, Tether is extending its services to layer 2 networks such as the Lightning Network and exploring new blockchains that promise improved speed and interoperability. Recently, Tether announced the launch of USDT on the RGB Protocol, a move that significantly enhances the Bitcoin ecosystem. This protocol enables private, scalable, and flexible smart contracts, offering users an upgraded experience and marrying Tether to cutting-edge technology.
The RGB Protocol’s rollout on the Bitcoin mainnet is noteworthy, as it supports a variety of tokenized assets while utilizing the Lightning Network for efficient transactions. With this step, Tether emerges as the first major token to adopt RGB’s client-side validation, emphasizing a commitment to privacy and transaction efficiency while meeting the demands of a modern and interconnected blockchain environment.