Tether moves 3 million USDT to OMG Network

Stablecoin issuer Tether has moved 3 million USDT coins, tied 1:1 to the U.S. dollar, to the OMG Network from Ethereum.

The move appears to be the first major transaction after Tether integrated with the OMG Network last week. OMG is a layer-2 scaling solution and is designed to reduce congestion on the Ethereum blockchain.

Tether CTO Paolo Ardoino told The Block that layer-2 solutions, in general, are growing in popularity as a scalability mechanism for popular blockchains — Lightning Network for Bitcoin, and OMG and zkRollups for Ethereum. These networks provide “extremely scalable layers that allow users to send many orders of magnitude, more transactions (with cheaper fees), still relying on the security of the main chain,” said Ardoino.

“I believe this is the most correct and clean approach from a technical and future proof point of view,” Ardoino added.

Tether, the largest stablecoin in the market with over 85% market share, currently works on seven blockchains: Algorand, Ethereum, EOS, Liquid Network, Omni, OMG Network, and Tron. Ethereum by far remains the largest value settler for Tether, as The Block reported recently.

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.