Tether to End USDT Support on Five Blockchains as Part of Strategic Refocus

Tether has just announced that it would be closing the tap on five legacy blockchains.

Starting on September 1, Tether will be discontinuing its USDt redemptions for users on the Omni Layer, Bitcoin Cash SLP, Kusama, EOS and Algorand platforms.

Tether CEO Paolo Ardoino explained that this is a strategic move as part of Tether's ongoing efforts to concentrate resources on networks offering higher scalability, developer activity and community engagement.

In his statement, Tether CEO Paolo Ardoino explained that sunsetting support for these legacy chains allows us to focus on platforms that offer greater scalability, developer activity, and community engagement.

Tether’s withdrawal from these networks has been a gradual and slow process, which was a deliberate move to give users enough time to adapt to the changes.

For example, the company made the announcement to cut off the issuing of USDt on the Onmi Layer, Kusama, and Bitcoin Cash SLP in August 2023.

Then a similar announcement was made to halt the minting on EOS and Algorand.

For Algorand, the transition is expected to be smooth. The Algorand Foundation confirmed that users “should experience no disruption,” as the announcement was made on year in advance which should provide customers with a ample time to make the necessary redemptions.

During this period, Algorand has actually seen growth in stablecoin volumes, with USD Coin (USDC) now leading in market cap on the network.

Low Usage Is Main Reason For Discontinuation

USDt remains the leading stablecoin, with a market cap of $139.4 billion, according to Cointelegraph indexes.

A review of USDt balances across the affected blockchains revealed that Omni Layer holds a net circulation of $82.9 million USDt, while other networks have a smaller participation: Bitcoin Cash SLP with $986,500, Kusama with $240,000, EOS with $4.2 million, and Algorand with $841,600.

Tether cited low usage as a primary reason for discontinuing support, particularly on the Omni Layer.

The company’s strategy is to refocus on platforms with greater adoption and technical advancement, ensuring that resources are allocated to ecosystems with the most potential for growth and innovation.

This decision comes as the stablecoin sector continues to evolve rapidly, with major issuers and protocols competing for market share and adoption.

Tether’s move reflects a broader industry trend toward consolidation on blockchains that offer robust infrastructure, active developer communities, and strong user bases.