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.