Leading stablecoin issuers Tether and Circle have announced they will be supporting Ethereum’s transition to a Proof-of-Stake consensus after the Merge upgrade, labeling the transition as one of the “most significant moments in blockchain history.”
In an announcement Tether, the firm behind leading stablecoin USDT, outlined it will work in accordance with Ethereum’s upgrade schedule, currently set to go through on September 19. Tether’s announcement reads:
“Tether believes that in order to avoid any disruption to the community, especially when using our tokens in DeFi projects and platforms, it’s important that the transition to POS is not weaponized to cause confusion and harm within the ecosystem.”
Circle, the firm behind the USDC stablecoin, also confirmed its support for a post-Merge Ethereum network, stating that it understands the “responsibility” it has “for the Ethereum ecosystem and businesses, developers and end users that depend on USDC, and we intend to do the right thing.”
The announcements come after various Ethereum miners started planning to create Ethereum Proof-of-Work (PoW). The move away from PoW is said to make the network cheaper, faster, and more environmentally friendly, however, it will also mark the end of an income stream for Ethereum miners who were being rewarded for securing the network.
In theory, to keep their activities intact and avoid the obsolescence of millions of dollars worth of mining hardware, miners are looking to back an Ethereum fork called EthereumPOW.
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