Tether also confirms its throwing weight behind the post-Merge Ethereum

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Scorching on the heels of an official announcement from USD Coin (USDC) issuer Circle Pay, stablecoin big Tether has now additionally formally confirmed its assist behind Ethereum’s upcoming Merge improve and swap to a Proof-of-Stake (PoS) consensus mechanism-based blockchain.

The announcement got here on the identical day as its stablecoin competitor, who pledged they will only support Ethereum’s extremely anticipated improve.

In an Aug. 9 assertion, Tether labeled the Merge one of many “most vital moments in blockchain historical past” and outlined that it’s going to work in accordance with Ethereum’s improve schedule, which is presently slated to undergo on Sept. 19.

“Tether believes that so as to keep away from any disruption to the group, particularly when utilizing our tokens in DeFi initiatives and platforms, it’s essential that the transition to POS is just not weaponized to trigger confusion and hurt inside the ecosystem.”

“Tether will intently observe the progress and preparations for this occasion and can assist POS Ethereum in keeping with the official schedule. We consider {that a} easy transition is crucial for the long run well being of the DeFi ecosystem and its platforms, together with these utilizing our tokens,” Tether added.

Whereas the official assertion solely got here out at the moment, the stablecoin issuer’s chief expertise officer Paolo Ardoino had already beforehand indicated in July that they deliberate to assist the post-Merge ETH2.

USDT is presently the biggest stablecoin in crypto with a complete market cap of $66.6 billion, whereas USDC is comparatively shut behind at $54.1 billion in accordance with CoinGecko. Each stablecoins have a big quantity of their circulating provide on Ethereum’s present Proof-of-Work blockchain, with USDT at $32.3 billion and USDC taking the top spot at $45.1 billion on the time of writing.

Given the scale of those stablecoins and their dominance over the stablecoin market, the present of this assist on this occasion ought to lead to a easy transition for the Ethereum, USDT and USDC ecosystems, in addition to the broader crypto market as an entire.

Associated: Institutions flocking to Ethereum for 7 straight weeks as Merge nears: Report

Nevertheless as Vitalik Buterin recently warned, their energy may doubtlessly trigger points in future Ethereum onerous forks, as centralized entities resembling Tether and Circle may select to make the most of the forked chain of their very own desire, slightly than what the Ethereum group has proposed.

“I believe within the additional future, that undoubtedly turns into extra of a priority. Principally, the truth that USDC’s resolution of which chain to think about as Ethereum may turn out to be a big decider in future contentious onerous forks,” he stated.

This week Ethereum will endure its closing Merge trial by way of the Goerli testnet, and if all goes to plan, there’s an expectation that the Sept.19 Merge date is unlikely to be delayed.