Tether Scraps USDT Freeze Plan on Five Chains, Ends Issuance and Redemption

Tether just flipped the script on blockchain governance—dropping freeze capabilities across five major networks while halting direct minting and burning operations.

The Unfreezing

No more centralized intervention on Polygon, Kusama, BNB Chain, EOS, or Algorand. The stablecoin giant pulled back emergency controls that once let them blacklist addresses at will.

Redemption Shutdown

Direct issuance and redemption through Tether's platform? Gone. Users now rely entirely on secondary markets and authorized partners—adding friction to what was once a seamless on/off ramp.

Decentralization Theater

Tether calls it 'aligning with community values.' Critics see calculated risk reduction—cutting legal exposure while pretending to embrace crypto's ethos. Because nothing says 'decentralization' like a company quietly offloading liability.

Another day, another pivot from the stablecoin issuer that somehow still operates like a black box—proving once again that in crypto, the most centralized players often talk the loudest about freedom.

Tether Phase-Out Hits Omni Layer with $82.9M in Circulating USDT

The change affects a relatively small portion of USDT’s total footprint. Omni Layer, once a primary vehicle for Tether, currently holds $82.9 million in circulating USDT.

EOS trails at $4.2 million, while the remaining networks each hold under $1 million, according to DeFiLlama.

Tether began winding down support for these chains in 2023, halting new issuance on Omni, Kusama, and Bitcoin Cash SLP last August.

EOS and Algorand followed in June 2024. The company’s revised stance keeps token transfers functional, but confirms it will not resume minting or redemptions.

The decision reflects Tether’s strategy to focus on chains with high demand and strong developer ecosystems.

Tether, the king of stablecoins, just dropped a crypto bomb: $USDT is disappearing from Omni Layer ( $OMNI), $EOS, ( $ALGO) Algorand, bitcoin Cash ( $BCH) $SLP, and Kusama ( $KSM)!

Starting September 1, 2025, these blockchains will be cut off, and users are running out of… pic.twitter.com/vjnvshJ28V

Ethereum and TRON remain its largest hubs, with $72.4 billion and $80.9 billion worth of USDT issued, respectively.

BNB Chain holds $6.78 billion, while newer chains like Arbitrum, Base, and solana are gaining traction, though they are more closely tied to rival stablecoin USDC.

The stablecoin sector has grown to $285.9 billion, with USDT and USDC dominating at $167.4 billion and $71.5 billion, respectively, according to CoinGecko.

Trump-Backed GENIUS Act Boosts U.S. Push for Dollar-Pegged Stablecoins

The shift also comes as U.S. policy support for stablecoins gains momentum. The recent passage of the GENIUS Act, signed by President Trump, aims to cement the dollar’s dominance by backing dollar-pegged stablecoins in global markets.

The Treasury Department expects the stablecoin market to exceed $2 trillion by 2028, a projection that places greater emphasis on liquidity, interoperability, and regulatory alignment across the ecosystem. Tether’s latest move underscores a pragmatic shift toward that future.

As reported, Ripple CEO Brad Garlinghouse has said the stablecoin sector is poised for explosive growth, projecting the market could balloon from its current $250 billion capitalization to as much as $2 trillion in the near future.

“Many people think it will reach $1 to $2 trillion in a handful of years,” Garlinghouse said, adding that Ripple is positioned to benefit from that trajectory.

Meanwhile, Western Union is positioning itself for a new phase of digital transformation, signaling strong interest in using stablecoins to modernize its global remittance operations.

CEO Devin McGranahan has outlined how stablecoins could streamline cross-border transfers, improve currency conversion in underserved markets, and provide financial tools for populations grappling with unstable local currencies.