Tether, the world’s most widely used stablecoin issuer, will cease USDT redemptions and freeze remaining tokens on five older blockchains — Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand — starting September 1, 2025.
The company says the decision follows a steep decline in usage across these networks and reflects a broader strategy to streamline operations and focus on faster, more scalable ecosystems.
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Tether CEO Paolo Ardoino said the company is phasing out legacy blockchains to refocus on faster, more active networks that can support the future growth of stablecoins.
The company is increasingly backing high-efficiency networks like Bitcoin’s Lightning and other Layer 2 solutions, citing stronger interoperability and developer engagement.
Users holding USDT on the affected chains are advised to redeem or migrate their tokens before the cutoff, either through Tether or approved third-party providers.
Despite Tether’s official explanation, parts of the crypto community remain skeptical about the real reason behind dropping support for five blockchains. While Tether cites low usage, critics suggest the move may be tied to growing regulatory pressure.
As some blockchains adopt stricter compliance and security standards, USDT may be losing compatibility in those environments.
Specifically, USDT may struggle to meet compliance standards set by the EU’s MiCA framework and evolving U.S. stablecoin regulations.
As some blockchains adopt stricter compliance and security standards, USDT may be losing compatibility in those environments.
Why This Matters
Tether is consolidating its USDT resources around faster, more active networks. The move reflects a shifting blockchain landscape, where scalability, developer activity, and regulatory readiness are becoming key to stablecoin survival and adoption.
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People Also Ask:
Tether is discontinuing USDT support on five blockchains due to low usage, aiming to refocus on faster, more scalable, and developer-active networks.
Users should redeem or migrate their USDT before the deadline through Tether’s platform or third-party service providers.
USDT will continue operating on Ethereum, Tron, Solana, and other networks with strong activity and scalability.
Layer 2 solutions, like Bitcoin’s Lightning Network, offer faster and cheaper transactions, making them attractive for Tether’s expansion plans.
