Tether to Discontinue USDT Support on Five Legacy Blockchains: What You Need to Know

• Why Is Tether Dropping Support for These Blockchains?
• How Will This Impact USDT Holders?
• Tether’s Strategic Pivot: TRON, Ethereum, and Beyond
• Historical Context: The Rise and Fall of Legacy Chains
• What’s Next for Stablecoin Competition?
• FAQs

Tether, the issuer of the world’s largest stablecoin, USDT, has announced it will cease support for the token on five legacy blockchains—Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand—starting September 1, 2025. The move aims to streamline operations and focus on high-activity networks like TRON and Ethereum. Here’s a deep dive into the implications, historical context, and what users should do next.

Why Is Tether Dropping Support for These Blockchains?

Tether’s decision to sunset USDT on Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand stems from declining usage and infrastructure costs. Data fromreveals these chains collectively hold less than 0.1% of USDT’s $160B+ supply. For instance, EOS hosts just 4.3 million USDT, while Omni—once the primary layer for USDT—now carries a mere 87 million tokens. Paolo Ardoino, Tether’s CEO, emphasized the need to prioritize networks with “scalability and vibrant developer ecosystems,” signaling a shift toward Layer 2 solutions like Arbitrum and Base.

Users holding USDT on affected chains must swap their tokens before September 1, 2025, when assets will be frozen. Exchanges like BTCC and others offer migration tools, but deadlines vary. Notably, Algorand (841K USDT) and Kusama (239K USDT) users face limited liquidity options, as many DeFi apps on these chains never gained traction. “This is a wake-up call for projects relying on legacy chains,” noted a BTCC analyst. “The market has spoken—liquidity follows utility.”

Tether’s Strategic Pivot: TRON, Ethereum, and Beyond

Tether’s focus on TRON and ethereum aligns with their dominance in stablecoin circulation. TRON alone saw 22 billion new USDT minted in 2025, surpassing Ethereum’s daily user metrics. Meanwhile, Layer 2 chains like Arbitrum (home to USDC’s DeFi dominance) are next in line for USDT expansion. “We’re evaluating chains with native DeFi activity,” Ardoino hinted, suggesting Tether aims to challenge USDC’s stronghold on Arbitrum and Base.

Historical Context: The Rise and Fall of Legacy Chains

Omni Layer, launched in 2014, was USDT’s original blockchain but failed to adapt to smart contract trends. Similarly, EOS and Algorand—despite hefty initial funding—struggled with developer retention. TradingView charts show their USDT trading volumes flatlined in 2023, coinciding with the rise of EVM-compatible chains. “These networks became ghost towns,” quipped a crypto trader. “Even exchanges hated managing their wallets.”

What’s Next for Stablecoin Competition?

With USDT’s supply crossing $250 billion (per), Tether’s pruning of legacy chains underscores its bid to outpace USDC, which grew 2.01% monthly versus USDT’s 2.42%. The battle now shifts to LAYER 2s, where USDC leads in DeFi integrations. “Tether needs more than liquidity—it needs developer love,” argued a DeFi founder. Whether its L2 push can dethrone USDC remains to be seen.

FAQs

Which blockchains will lose USDT support?

Omni Layer, bitcoin Cash SLP, Kusama, EOS, and Algorand will no longer support USDT after September 1, 2025.

How can I migrate my USDT from these chains?

Use exchange-provided tools (e.g., BTCC’s swap portal) or bridge services before the deadline. After September 1, frozen tokens will be irrecoverable.

Why is Tether focusing on TRON and Ethereum?

TRON and Ethereum handle over 99% of USDT’s circulation and offer robust DeFi ecosystems, per CoinGlass data.