Tether to Halt USDT on Five Legacy Blockchains Starting September 1: What You Need to Know

• Why Is Tether Dropping Support for These Blockchains?
• How Will This Impact Token Holders?
• What’s Next for Tether’s Expansion?
• Did These Blockchains Fail?
• USDT vs. USDC: The Stablecoin Wars Heat Up
• Historical Context: From Omni to TRON
• What Should Investors Do?
• FAQs

Tether, the issuer of the world’s largest stablecoin, USDT, is discontinuing support for five legacy blockchains—Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand—starting September 1. The move aims to streamline operations and focus on high-activity networks like TRON and Ethereum. Here’s a deep dive into the implications, liquidity shifts, and Tether’s strategic pivot toward Layer 2 solutions.

Why Is Tether Dropping Support for These Blockchains?

Tether’s decision reflects a broader industry trend: prioritizing scalability and developer activity. The five legacy chains collectively hold less than $100 million in USDT, with minimal DeFi adoption or exchange support. For context, Omni (the original USDT chain) has ~$87 million, while Kusama and Algorand combined account for under $1.1 million. As CEO Paolo Ardoino stated, this shift allows Tether to "focus on platforms driving the next wave of stablecoin adoption."

How Will This Impact Token Holders?

Users holding USDT on these chains must migrate their assets before September 1. Exchanges like BTCC and others may offer swap tools, but delays could leave funds frozen. Pro tip: Check your wallet provider’s migration policies ASAP. Tether will still reissue tokens on supported chains (e.g., TRON or Ethereum) upon request, but the process isn’t automatic.

What’s Next for Tether’s Expansion?

Tether is doubling down on Layer 2 networks (L2s) with strong DeFi ecosystems, like Arbitrum and Base, where rival USDC dominates. The goal? Catch up to Circle’s market share by leveraging L2s’ lower fees and faster transactions. Recent TRON mints (22B USDT in 2025 alone) hint at Tether’s bullish outlook for high-throughput chains.

Did These Blockchains Fail?

Not entirely. Many, like EOS, once promised "Ethereum killer" status but struggled with liquidity fragmentation. For example, EOS’s $4.3 million USDT circulation pales next to TRON’s $250B+ supply. The lack of exchange support (few platforms want to manage multiple wallets) sealed their fate. As one BTCC analyst noted, "Legacy chains became ghost towns—no developers, no users, just dust."

USDT vs. USDC: The Stablecoin Wars Heat Up

Tether’s supply grew 2.42% last month, outpacing USDC’s 2.01%, per CoinGlass data. But USDC’s lead in L2 adoption (e.g., Arbitrum) forces Tether to play catch-up. The battle isn’t just about supply; it’s about utility. As DeFi lending and DEX pairs increasingly rely on stablecoins, Tether’s L2 push could redefine the pecking order.

Historical Context: From Omni to TRON

USDT launched on Bitcoin’s Omni Layer in 2014 before expanding to ethereum in 2017. TRON’s rise as a USDT hub (thanks to low fees) mirrors crypto’s evolution toward niche specialization. The phased-out chains? They’re relics of an era when "multi-chain" meant scattering tokens, not scaling them.

What Should Investors Do?

This article does not constitute investment advice. However, traders should:

• Audit their USDT holdings for legacy-chain exposure.
• Monitor exchange announcements for migration windows.
• Watch L2 adoption metrics—Tether’s next moves could reshape DeFi liquidity.

FAQs

Which blockchains are losing USDT support?

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

Can I still redeem legacy-chain USDT after September 1?

No. Tether will freeze remaining tokens, though reissuance on supported chains (via Tether’s platform) remains an option.

Why is TRON absorbing most USDT supply?

TRON’s low fees and high throughput make it ideal for retail and arbitrage trading, per TradingView activity data.