Tether Drops a Bombshell: USDT Support Axed on 5 Major Blockchains
Tether just pulled the plug—hard. The stablecoin giant announced it’s sunsetting USDT support on five blockchains, leaving projects scrambling. No more life raft for those chains.
Which networks got the axe? The usual suspects: overhyped Layer 2s and legacy chains that couldn’t keep up. Tether’s move screams consolidation—why spread liquidity thin when Ethereum and Solana eat everyone’s lunch?
Devs caught off guard? Tough. This is crypto—adapt or die. Meanwhile, traders shrug. USDT remains the king of stablecoins, even if it’s shedding some dead weight. Another day, another ‘decentralized’ project learning who really holds the leash.
Tether to Wind Down USDT Support
Omni Layer is a Bitcoin-based software protocol, while Algorand, Kusama, and EOS are Proof-of-Stake layer-1 networks. SLP was built on Bitcoin Cash to enable users to create and manage custom tokens.
Tether said these platforms played a foundational role in its growth; however, their USDT volume has significantly plummeted in the last two years. By September 1, the stablecoin company will discontinue USDT redemptions and freeze the remaining tokens on these blockchains.
The decision is part of Tether’s efforts to optimize infrastructure and channel its resources toward actively developed blockchains that align with community usage trends. The company has reviewed blockchain usage data, market demand, and feedback from community stakeholders and partners before deciding on the move.
Tether’s CEO, Paolo Ardoino, said: “As the digital asset ecosystem evolves, Tether remains committed to adapting alongside it. Sunsetting support for these legacy chains allows us to focus on platforms that offer greater scalability, developer activity, and community engagement — all key components for driving the next wave of stablecoin adoption.”
Reallocating Resources to Developing Chains
USDT users on the affected blockchains are to redeem their USDT as soon as possible, or request an issuance of their holdings on supported blockchains. They can also migrate their holdings to supported chains via service providers, according to the terms of those platforms.
Although Tether is ending USDT support on these five chains, the company is still open to collaborating with innovative ecosystems. This means the firm is willing to expand USDT support on scalable networks.
Tether is focusing on layer-2 and decentralized finance-native chains with robust user activity, developer engagement, speed, improved interoperability, and ecosystem growth. The latest decision will enable the firm to reallocate resources from underutilized blockchains to those that serve its goals.
Meanwhile, Tether has remained persistent in expanding its business beyond stablecoins. The company is working toward becoming the world’s largest bitcoin miner by the end of the year.
