Tether’s USDT exit from five blockchains marks a strategic shift toward scalable networks with real usage and higher liquidity.
The move signals Tether’s focus on Layer 2 solutions and dominant chains like Ethereum and Tron to streamline stablecoin operations.
Projects on affected chains face pressure to migrate or adapt as Tether prioritizes chains with stronger developer and user engagement.
Tether has officially announced it will end support for USDT on Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand by September 1, 2025. This decision follows an infrastructure review aimed at improving efficiency and focusing on networks with stronger adoption.
According to Tether, these chains show declining usage and no longer align with its strategic direction. Consequently, remaining tokens on these blockchains will be frozen, and redemptions will no longer be possible after the deadline.
Besides trimming down its network exposure, Tether aims to optimize its operations. These five chains were once key to USDT’s early growth. For instance, Omni was USDT’s original home, processing over $7 million in transactions at its peak. Likewise, EOS once hosted over 30 million monthly users, but activity has dropped in recent years.
Strategic Shift to High-Volume Chains
Tether’s CEO Paolo Ardoino confirmed the decision as part of a larger plan to prioritize scalable and active ecosystems. He emphasized the developer engagement, community support, and transaction volume in choosing where USDT will remain active. Tether is doubling down on Layer 2 solutions like Lightning, as well as dominant networks like Ethereum and Tron, which host most of USDT's supply.
Moreover, Tether still supports over a dozen chains including Solana, Avalanche, Polkadot, and TON. However, the company has made it clear that underused blockchains will not be supported moving forward. Additionally, Algorand users received a prior warning last year, which gave them time to migrate their holdings or redeem tokens without disruption.
Impact on Blockchain Ecosystems
The end of support poses serious challenges for projects still running on these networks. Developers are expected to choose whether to migrate liquidity, push for alternative stablecoins, or risk user losses. Consequently, this could cause ripple effects across affected ecosystems, especially those relying on Tether’s liquidity.
However, the Algorand Foundation remains unfazed. They stated that USDC dominates their network and stablecoin usage continues to grow. In contrast, usage data from Token Terminal shows limited revenue, suggesting Algorand’s real stablecoin adoption remains under pressure.
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