Tether, the company behind the largest stablecoin in the world, USDT, has affirmed its support for the impending Ethereum Merge. Tether stressed in a statement on Tuesday that the Ethereum ecosystem should not be harmed or confused by the imminent transition being weaponized.
Because of this, Tether said it will closely monitor the development and planning for this event and will support POS Ethereum in accordance with the official schedule. In order to maintain the long-term sustainability of Defi and other crypto ecosystems using Tether’s tokens, the move, according to Tether, must be seamless.
Following the completion of the testing phase, the much-anticipated “The merge” of Ethereum, which will change the consensus from proof of work to proof of stake, is expected to occur on September 19, as TheCoinRise reported.
Some members of the Chinese Ethereum mining community have considered starting a new network, ETHW, around the time of the merge, which will continue employing proof of work, as mining will become redundant as a result of this transition. Because of this, stablecoin issuers face difficulties because they can only use their reserves to support redemptions for one state of the chain.
Tether and Circle unite
Notably, prior to Tether, Circle, the company behind the major stablecoin USDC, also declared its support for the merge. Therefore, the announcement by Tether unites USDT and USDC, tamping down concerns over a potentially contentious hard fork in September.
Even the co-founder of Ethereum, Vitalik Buterin, has speculated that certain stablecoin issuers might have an impact on future Ethereum hard forks by choosing which chain to support.
Tether recognizes that being the biggest stablecoin in the market, trading at ten times the volume of our closest competitor, USDC, it is the company’s responsibility to reassure the community of its support for The Merge.
Even though the Ethereum Foundation has established a clear schedule, this does not change the reality that the protocol will cause significant environmental harm in the few weeks before this event occurs.