Tether, the entity behind the leading stablecoin USDT, has reversed its earlier decision to completely cease USDT functions on five specific blockchains: Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. Initially proposed in July, this move came as a response to changes in Tether’s strategic direction.
The rationale presented for this initial decision was a need to realign with evolving user preferences and to concentrate more on robust, frequently developed blockchain ecosystems. The noticeable decline in activity on these specific platforms was also cited as a key factor for limiting USDT engagement.
Previously, Tether had advised users with holdings of USDT on the mentioned blockchains to exchange their stablecoins by September 1, 2025. However, this guidance has now been altered following the firm’s new announcement.
Why Did Tether Alter Its Strategy?
In a recent press release, Tether revealed that investors can retain their USDT on the five legacy blockchains without the need to redeem them before the indicated deadline. While Tether will end support for direct issuance and redemption on these platforms, users are now able to transfer their USDT between different chains.
The release emphasized:
Based on feedback from the communities on these legacy blockchains, Tether has adjusted its course and will refrain from freezing smart contracts. Users will have the freedom to transfer tokens between wallets while Tether will cease direct support for these tokens, classifying them differently from its other offerings.
The updated approach aligns with a comprehensive strategy to champion blockchains that demonstrate substantial developer engagement, scalability, and user interest. “Tether is dedicated to facilitating a seamless transition and will maintain communication with the community for transparency throughout this undertaking,” the announcement stated.
Currently, Tron and Ethereum dominate the landscape of USDT adoption, containing approximately $80.9 billion and $72.4 billion of Tether’s stablecoins, respectively. The BNB Chain ranks third, holding about $6.78 billion of USDT.
The Current State of USDT Market Capitalization
As it stands, the total market capitalization of Tether’s USDT is approximately $167.4 billion, as reported by CoinGecko.
