Coinbase Canada to suspend USDT trading later this month

Tether ends support for Omni, its original blockchain

August 17, 2023 05:26 pm

dRender/Shutterstock modified by Blockworks

Coinbase sent Canadian users an email on Thursday and announced it would suspend their ability to trade for the stablecoin Tether at the end of August.

“We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent reviews, Coinbase will suspend trading in Canada for RAI Reflex Index (RAI), Dai (DAI), and Tether on Aug. 31 around 12 pm ET,” a Coinbase spokesperson told Blockworks via email.

“The trading suspension will not affect customers’ access to RAI, DAI or USDT wallets which will remain available for deposit and withdrawal functionality after the trading suspension,” the firm continued.

Earlier this week, Coinbase announced that it was “accelerating” its international expansion with a Canadian launch.

Newsletter

Subscribe to The Breakdown

“Canada is well positioned to be a global leader in the cryptoeconomy thanks to the high levels of crypto awareness, a passionate local tech ecosystem, and the progress towards a strong regulatory framework,” Coinbase’s Nana Murugesan said in a statement.

The operator behind the stablecoin USDT also announced some changes on Thursday.

Tether (USDT) detailed a “strategic transition” and is discontinuing support for “Kusama, Bitcoin Cash SLP and Omni Layer implementations.” Omni stands out, as it was the first layer Tether used when it was known as Realcoin in 2014.

“However, over the years, the Omni Layer faced challenges due to the lack of popular tokens and the availability of USD₮ on other blockchains,” Tether said in a post.

Starting Aug. 17, USDT-Omni, USDT-Kusama and USDT-BCHLSP will stop minting. However, all three will be redeemable “as normal” for the next 12 months.

Bitfinex and other platforms will still allow the pairs swap for other chains.

“While this shift signifies a transition, the focus will now be on directing resources toward the development of RGB, which is a client-side validated state and smart contracts system that operates on layer-2 and 3 of the Bitcoin ecosystem,” the post said.

Tether reported around $73 billion in exposure to US Treasury bills in its second quarter attestation, with excess revenues of $3.3 billion as of June 30.

Get the news in your inbox. Explore Blockworks newsletters:

The Breakdown: Decoding crypto and the markets. Daily.
0xResearch: Alpha in your inbox. Think like an analyst.

Tags

Newsletter

The Breakdown

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Digital Asset Summit 2026

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

buy tickets learn more

recent research

Research

Kinetiq Protocol: From LST Infrastructure to HIP-3 Deployer

Kinetiq has established itself as Hyperliquid's dominant liquid staking protocol, holding 82.5% of LST market share with $610M in TVL. The protocol is now expanding beyond its kHYPE staking core into higher take-rate verticals: iHYPE for institutional custody rails, Launch for HIP-3 capital formation, and Markets for builder-deployed perpetuals. We view Markets, launching Jan. 12, as the highest-potential product line given its mechanically scalable, activity-linked unit economics. Near-term revenue remains anchored by kHYPE's KIP-2 fee schedule (~$1.6M annualized), while Markets provides embedded optionality if HIP-3 economics normalize post-Growth Mode. KNTQ's setup is relatively clean: zero insider unlocks until November 2026, 6.2% buyback yield from staking revenue, and cleared airdrop overhang. Risks center on unproven Markets execution, declining kHYPE TVL despite ongoing incentives, and competition from Hyperliquid's native initiatives.

by Shaunda Devens