Tether announces phasing out support for USDT on five outdated blockchain networks
In a strategic move aimed at driving broader adoption of its stablecoin in the ever-evolving crypto ecosystem, Tether, the issuer of the popular USDT stablecoin, has announced it will discontinue support for USDT on Algorand, Bitcoin Cash, EOS, Kusama, and Omni starting September 1, 2025.
The decision to sunset support for these legacy chains is primarily due to declining usage, minimal developer activity, and lower transaction volumes on these blockchains over the past two years. Collectively, these five networks account for a very small portion of Tether’s circulating supply, with EOS carrying about $5 million in USDT, Algorand holding just $841,000, Bitcoin Cash maintaining less than $1 million, and Omni hosting $82 million from an original total of $888 million. Kusama, on the other hand, only has $250,000 worth of USDT remaining active out of the $3.5 million ever issued.
Tether CEO Paolo Ardoino emphasized that this move will enable the company to prioritize technological platforms that support the next wave of stablecoin adoption, focusing on layer 2 networks such as the Lightning Network, newer blockchains offering enhanced developer tooling and richer ecosystems, and blockchains with higher transaction speeds and strong interoperability.
This strategic shift aligns with how Tether's stablecoin is being effectively utilized, as USDT on Ethereum and Tron jointly hosts more than $155 billion in active supply, accounting for over 95% of USDT’s circulating supply. Users holding USDT on the discontinued chains are advised to redeem or migrate their tokens before September 1, 2025, using blockchain bridges or exchanges to move their holdings to supported platforms.
The move by Tether coincides with significant regulatory developments in the US and EU. In the US, a bill focused on stablecoin regulation is gaining traction, while Europe's MiCA framework has already taken effect. These evolving regulatory conditions have prompted several platforms to scale back or eliminate their exposure to USDT.
Tether's operational adjustment is expected to reinforce its position in the competitive stablecoin market, as it aims to make USDT more accessible and useful for decentralized finance (DeFi) and payment platforms worldwide by doubling down on networks with faster transaction capabilities and active developer communities. The company stopped minting USDT on Bitcoin Cash, Kusama, and Omni in August 2023, signalling its intention to lean heavily on Layer 2 networks and emerging blockchain ecosystems in its future development focus.
The strategic move towards more modern networks is due to newer options offering improved interoperability and reduced transaction costs, which are crucial for the future growth and adoption of stablecoins. This approach is expected to reinforce Tether's position in the competitive stablecoin market, as it seeks new blockchain integrations with high scalability and active user bases to further expand its reach and utility.
- To support the next wave of stablecoin adoption, Tether will prioritize technological platforms that offer improved interoperability and reduced transaction costs, focusing on layer 2 networks, newer blockchains, and blockchains with higher transaction speeds.
- As regulatory conditions in the US and EU evolve, Tether aims to make USDT more accessible and useful for decentralized finance (DeFi) and payment platforms worldwide by leaning heavily on networks with faster transaction capabilities and active developer communities.
