Tether Halts Support for Bitcoin’s Omni Layer Due to Lack of Interest
USDT issuer Tether has claimed that it will not issue any more Tether tokens on Bitcoin Omni Layer. The stablecoin issuer has also Bitcoin Cash and Kusama platform. The decision to discontinue Bitcoin Omni Layer has been justified as waning market demand.
The Omni layer token versions were deemed as one of the first stablecoin rendition on Tether. At the same time, Tether has confirmed the same for Kusama and Bitcoin Cash versions.
The stablecoin project has now confirmed with perfect certainty that there are not going to be new tokens issued on Bitcoin Omni Layer, Kusama, or Bitcoin Cash network. On the other hand, the users will be able to redeem their existing tokens for the remaining part of the year.
At the same time, the firm will issue confirmation for completion of the redemption process accordingly. The Bitcoin Omni is a smart contract ecosystem that was known as Mastercoin. It has been active since 2013. Tether became the first stablecoin to launch on the Omni layer in 2014.
Tether has appreciated the role played by the Omni layer in its recent departure announcement. The crypto firm has maintained that it compliment the team behind Omni layer for their innovative solutions and wonderful contributions to the project.
At the same time, the firm also acknowledged the issues faced by Omni layer based on the availability of Tether stablecoin namely USDT on various alternative blockchains. To this effect, Tether opted for switching permanently to substitute transportation layers in the lieu of Omni. The migration has led to the halting of USDT issuance on Omni layer for good.
Tether is now working on developing a new smart contract for Bitcoin transactions named RGB. Once the smart contract is launched, Tether will start issuing tokens in RGB form and rehash its Bitcoin network presence.
In 2023, the competition in the stablecoin market has increased drastically motivating Tether to revamp its efforts in order to maintain its market dominance. Binance recently listed FDUSD on 26th July and PayPal a digital payments company issued a new stablecoin named PYUSD on 7th August.
Coinbase Suspends DAI, RAI and USDT for Canadian Users
Coinbase has decided to halt three stablecoin options for its Canadian consumers namely RAI, DAI, and USDT. The exchange has maintained that it conducts regular audits to ascertain which tokens fulfil the latest listing requirements.
The suspension is limited to trading effective from 31st August, as per Coinbase notification. The firm will continue deposit and withdrawal services for these stablecoins. Coinbase intends to expand its operations in Canadian markets.
Meanwhile, stablecoins like Tether that are backed by fiat holdings are restricted in Canada based on the Ontario Securities Commission guidelines. The OSC halted USDT services on Coinsberry and Wealthsimple in 2021.
At the same time, the regulator has also penalized crypto exchanges such as KuCoin, Poloniex, Bybit, and OKEx on account of their unlicensed operations. USDC has become the only coin to receive approval from CSA or Canadian Securities Administrators.
During this time, other major exchanges such as OKX and Binance have also folded their operations in Canada in June and September subsequently citing regulatory contentions.
