Tether has released a plan to safeguard its stablecoin USDT in the event that the blockchains it operates on become unresponsive.
According to a new press release, Tether is making improvements to increase both blockchain resilience and user protection in a worst-case scenario type of event.
Because USDT is used on so many different blockchains, Tether says a “blockchain recovery plan” is necessary if any USDT transactions are disrupted. With such a plan in place, Tether aims to avoid any user disruption and maintain USDT accessibility.
“Tether is a lifeline for hundreds of millions of users across the globe. Tether is especially important in emerging markets and developing countries, who rely on USDT in their day-to-day lives for both savings and payments. As part of honoring our user’s trust in USDT, Tether believes it is crucial to ensure that, even in highly-unlikely worst-case scenarios, USDT will never be at risk.”
According to the press release, USDT operates independently of any blockchain it may be on, which is only used as a “transport layer.” But whatever blockchain USDT may be deployed on, all blockchain transactions carry some risk that Tether wants to minimize for its users.
If a blockchain becomes unresponsive, according to the announcement, USDT can be easily transferred between blockchains by Tether.
“Affected users would have the option to initiate the migration process through a user-friendly interface, accessible via web or command-line tools. This process involves cryptographically signing a request for migration to verify ownership of Tether tokens. Support for popular browser extension wallets and hardware wallets such as Ledger or Trezor is available for this process.
Additionally, a command-line interface allows users to input their private key directly, enabling them to sign the necessary message using an open-source script on their local machine.”
At time of writing, USDT’s market cap is at $100.04 billion.
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