Tether, the world’s largest stablecoin issuer, is exploring new ways to expand USDT on Bitcoin. The company announced plans to potentially support Taproot Assets and RGB, two Bitcoin Layer 2 protocols linked to the Lightning Network. These technologies are not yet live but could provide a native Bitcoin framework for USDT in the future.
This expansion comes as part of Tether’s broader infrastructure review, which also involves winding down support for older blockchain implementations.
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According to the July announcement, USDT support on five legacy chains — Bitcoin Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand — will cease on September 1, 2025.
Modernizing USDT on Bitcoin
The move ends more than a decade of USDT issuance on the Omni layer, Bitcoin’s original stablecoin framework. After September 1, Omni-based USDT will be frozen and no longer redeemable.
Similarly, EOS, Algorand, SLP, and Kusama versions of USDT will be discontinued, while smaller amounts of USDT will remain on Blockstream’s Liquid sidechain.
Tether has emphasized that the decision reflects usage trends and infrastructure efficiency. Omni and some other legacy chains are no longer actively developed or widely used, while the company continues to focus on networks with stronger adoption, including Ethereum, Tron, and Solana.
By pairing the wind-down of older chains with future Layer 2 support on Bitcoin, Tether aims to modernize its operations and expand native USDT access on Bitcoin without relying on outdated infrastructure.
Why This Matters
Tether is ending support for older chains while planning future support for Bitcoin Layer 2 options, such as Taproot Assets and RGB. Although these technologies are not yet fully functional, the move could alter how USDT operates on Bitcoin, potentially affecting accessibility and transaction efficiency.
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Tether plans to explore issuing USDT on Bitcoin Layer 2 technologies like Taproot Assets and RGB, which are not yet live but could provide native Bitcoin stablecoin support in the future.
USDT support on older chains — Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand — will end on September 1, 2025. These chains are no longer actively developed or widely used, and Tether wants to focus on networks with stronger adoption.
After support ends, USDT on the affected chains will be frozen and no longer redeemable. Only a small portion will remain on Blockstream’s Liquid sidechain.
Users holding USDT on legacy chains will need to redeem or transfer tokens to supported networks like Ethereum, Tron, or Solana. In the future, Layer 2 support on Bitcoin may offer new options.
These technologies are still in development. Tether has not set a launch date, so they remain a future possibility rather than a current option.
