OmiseGO (OMG) announced on June 1 that it has integrated stablecoin Tether (USDT) into its network, allowing the latter’s transactions to run on the Plasma architecture, which groups transactions, leading to lower transaction fees and greater throughput.

The integration means that Tether will experience transaction confirmations, easing some of the burden that the most popular stablecoin - by market cap - experiences. Bitfinex said that the transaction fees will be greatly reduced from now on. The grouping of transactions for a single transaction fee that Plasma provides, in addition to reducing costs, will overall also help unclog the Ethereum network. 

Bitfinex CTO Paolo Ardoino said that this would improve the Tether ecosystem in several ways,

By migrating USDt value transfers to the OMG Network, we save costs, drive performance improvements, and relieve pressure on the root chain. This is good for Bitfinex, our users, and the entire Ethereum ecosystem. This allows traders to react faster to trading opportunities and more efficiently arbitrage between exchanges as the network grows.

The Bangkok-based project has been experiencing a string of positive headlines in recent months, first getting listed on Coinbase, before releasing its Ethereum scaling solution Plasma just a few days ago on June 1. 

The announcement notes that USDT transactions consume “more gas fees than the next 10 protocols and applications combined”, and the Plasma solution would benefit the entire Ethereum ecosystem. 

The OMG token has seen a mild price rally since the news began rolling out, jumping from $1.20 towards the end of May and currently sitting at roughly $1.75 at the time of publishing.