Tether to support Ethereum’s transition to PoS

The company called this event one of the most significant moments in blockchain history

10.08.2022 - 07:30

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What’s new? Tether Limited, the issuer of the USDT stablecoin, has announced support for the Ethereum upgrade that will result in the blockchain changing its consensus algorithm from Proof-of-Work (PoW) to Proof-of-Stake (PoS). In an official blog post, the company’s representatives called this event “one of the most significant moments in blockchain history.”

Tether’s blog announcement

Tether Limited is the largest stablecoin issuer in the cryptocurrency market. The stablecoin USDT ranks third in the overall ranking of cryptocurrencies by capitalization with a figure of $66,53 billion, according to CoinMarketCap.

What other statements have been made? Representatives of Tether stressed that the transition to PoS should not carry risks that could cause confusion and harm the entire ecosystem. The company will continue to closely monitor the progress and preparations for the transition in line with the official schedule. Tether believes a smooth transition is necessary for the long-term health of the DeFi ecosystem and decentralized platforms, including those that use USDT.

About switching to PoS. The Merge upgrade release is scheduled for late September and will result in increased speed, efficiency, security, and scalability of the network, the algorithm will change from PoW to PoS, and the way coins are earned will change from mining to staking. In this, during the upgrade, it is possible a split into two networks, one of which will continue to run on PoW.

Circle, the issuer of the USDC stablecoin, previously said that the asset would only support an upgraded version of the Ethereum network running on PoS.

In June, Tether announced the launch of the GBPT stablecoin pegged to the British pound sterling. The asset will initially be available on the Ethereum network. GBPT became Tether’s fifth fiat-pegged stablecoin, following USDT (US dollar), EURT (euro), CNHT (yuan), and MXNT (Mexican peso).

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