Tether and Circle to Support Ethereum Transition

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  • Tether and Circle have stated that they will support the post-merge Ethereum
  • Ethereum is due to switch to proof-of-stake in around five weeks
  • Both USDC and USDT will switch to the new network and will not interact with any post-merge proof-of-work networks

Tether and Circle have both announced that their stablecoins will support post-transition Ethereum in a further sign of adoption from the wider crypto space. The two stablecoin makers both published blog posts yesterday in which they pledged support for the new look Ethereum and assured holders that the switch will have no impact on their operations.

Tether and Circle Announce Support on Same Day

It can’t have been coincidental that both Tether and Circle announced their support on the same day, with the two stablecoin giants, which together make up over 78% of the total stablecoin supply, pledging their support for Ethereum in no uncertain terms.

Tether called the transition, which is due to take place in about five weeks, “one of the most significant moments in blockchain history”, with the stablecoin maker saying that it will “closely follow the progress and preparations for this event and will support POS Ethereum in line with the official schedule”.

For its part, Circle said that it “intends to fully and solely support the Ethereum proof-of-stake (PoS) chain post-merge”, adding that it does not “anticipate disruptions to USDC on-chain capabilities nor to our fully automated issuance and redemption services.”

Both Will Ignore “Weaponized” Chains

Both Tether and Circle acknowledged the possibility of a strain of miners keeping the old Ethereum alive, but confirmed that they would not be issuing coins on the old network. Circle refused to “speculate on the possibility of forks post Ethereum Mainnet merge”, simply reaffirming that “USDC as an Ethereum asset can only exist as a single valid “version”, which will be the proof-of-stake version.

Tether addressed this by saying that “it’s important that the transition to POS is not weaponized to cause confusion and harm within the ecosystem.”