The largest stablecoin by market capitalization, tether (USDT), is now live on the OMG Network.
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According to an official announcement, the partnership with the OMG Network is intended "to reduce Ethereum congestion and gas fees with improved transaction speeds."
It is expected that the expansion to the OMG network will result in a reduction of confirmation times delivering faster payments while fees will be reduced without compromising on-chain security.
Tether CTO Paolo Ardoino says by migrating the stablecoin value transfers to the OMG Network the issuer save costs, drive performance improvements and relieve pressure on the root chain network.
"This is good for Bitfinex and our customers, and the whole Ethereum ecosystem," Ardoino added.
While the Ethereum blockchain is a valuable resource for USDT, the heavy demand might lead to severe network congestion.
As each block has only a finite space available to users, total transaction throughput is capped at approximately 12 TPS. When transaction demand exceeds 12 TPS, settlement times increase and gas costs can rise significantly, Tether said.
Earlier, iHodl reported that the total capitalization of the USDT stablecoin passed the $10 billion mark amid high demand in the decentralized finance market.
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