Tether moves first millions of USDT to Ethereum sidechain

The issuer of the stablecoin Tether transferred 3 million USDT to the OMG Network sidechain, a solution for Ethereum scaling.

HUGE MILESTONE for the Bitfinex and @omgnetworkhq integration with a 3M $USDt transaction 🎉https://t.co/xesjR1Qk1X pic.twitter.com/ruOhbDMHFA

— Bitfinex (@bitfinex) August 28, 2020

Following the integration of Tether into OMG Network last week, it marked the first major transaction.

The company said sidechain support would cut costs, boost throughput, and relieve pressure on the main network.

Chief Technology Officer Paolo Ardoino told The Block that Layer 2 solutions are growing increasingly popular as a scalability mechanism for popular blockchains — Bitcoin’s Lightning Network, as well as OMG and zkRollups for Ethereum.

re: Layer 2 approach in general
“I believe this is the most correct and clean approach from a technical and future-proof point of view” https://t.co/wStYCzsnuk

— Paolo Ardoino (@paoloardoino) August 28, 2020

These networks enable sending an order of magnitude more transactions, while relying on the security of the main blockchain, Ardoino noted.

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

This week the market capitalization of the most popular stablecoin surpassed 13 billion. More than 8.6 billion USDT have been issued on Ethereum.

Earlier, Chainalysis analysts said that Tether became one of the popular tools for capital outflows from China.

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