Omni Layer, Bitcoin Cash SLP, Kusama, EOS, Algorand
Effective September 1.
According to the announcement made on July 11, redemption operations will cease and the remaining digital tokens on these networks will be permanently frozen.
This decision is part of a strategy described by the company as improving infrastructure, aimed at keeping pace with changes in user behavior and directing resources towards more effective networks in terms of performance and scalability.
This move is a continuation of a gradual withdrawal process that began in 2023 when the company halted minting coins on the network:
Bitcoin Cash, Kusama, Omni Layer
Then later on Algorand and EOS, the latter is now known as Vaulta.
Despite halting issuance on those networks, Tether continued to allow the redemption of traded coins on them until recently.
With the new decision, this phase will be completely closed.
Paolo Ardoino, the CEO of Tether, clarified that this move represents a necessary step to keep pace with rapid developments in the digital asset ecosystem. He added:
Discontinuing support for these legacy networks allows us to focus on more advanced infrastructures, which have greater scalability and community and developer activity, essential elements for enhancing global stablecoin adoption.
The company noted that the excluded networks were fundamental in the early stages of USDT's expansion, but have seen a significant decline in usage and trading volume in recent years.
However, USDT still maintains its position as the largest stablecoin in the market, with a market value of nearly $160 billion.
As part of future trends, Tether intends to enhance its support for emerging second-layer networks, such as the Lightning Network, alongside high-performance blockchain networks, with the goal of improving transaction speed, interoperability, and expanding the adoption of stablecoins.
Tether advised users holding USDT on the affected networks to withdraw or request a transfer to supported networks before the deadline.
Users who cannot directly benefit from Tether's services can resort to third-party service providers.
The company confirmed its commitment to expanding new integrations to improve the infrastructure of USDT and meet the renewed demands of the global market.