Tether to Sunset USDT on Five Legacy Blockchains by September 1: What You Need to Know
- Why Is Tether Discontinuing USDT on These Blockchains?
- Which Blockchains Are Affected, and How Much USDT Is at Stake?
- What Should Legacy USDT Holders Do?
- Tether’s Expansion Plans: L2 Networks and Beyond
- Market Impact: USDT vs. USDC Growth
- Historical Context: Why Did These Chains Fail?
- FAQ: Your Burning Questions Answered
Tether, the issuer of USDT, is discontinuing support for its stablecoin on five legacy blockchains—Omni, 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, historical context, and what token holders should do next.
Why Is Tether Discontinuing USDT on These Blockchains?
Tether’s decision reflects a strategic shift toward networks with higher scalability, developer activity, and community engagement. Paolo Ardoino, CEO of Tether, emphasized the need to adapt to the evolving digital asset ecosystem. "Sunsetting support for these legacy chains allows us to focus on platforms driving the next wave of stablecoin adoption," he said. Data fromshows these five chains collectively hold less than $100 million in USDT, with minimal DeFi activity.
Which Blockchains Are Affected, and How Much USDT Is at Stake?
The impacted chains include:
- Omni Layer (Bitcoin-based): ~$87 million USDT
- Bitcoin Cash SLP: Under $1 million
- Kusama: ~$239,000
- EOS: $4.3 million (post-Valuta rebranding)
- Algorand: ~$841,000
Despite the phase-out, the impact on USDT’s $250B+ supply is negligible—these chains represent less than 0.04% of total circulation.
What Should Legacy USDT Holders Do?
Users must swap their tokens before September 1. Options include:
- Exchange-based swaps: Platforms like BTCC may offer migration tools.
- Tether’s redemption process: Request reissuance on supported chains (e.g., TRON or Ethereum).
Check transaction fees before migrating—Ethereum’s gas costs might outweigh small holdings.
Tether’s Expansion Plans: L2 Networks and Beyond
While retiring legacy chains, Tether is eyeing Layer 2 (L2) networks like Arbitrum and Base to compete with Circle’s USDC dominance. Arbitrum currently leads in L2 stablecoin supply, fueled by USDC’s DeFi integration. Tether’s TRON minting spree continues, with 22B USDT created in 2025 alone—solidifying its lead over ethereum in daily users.
Market Impact: USDT vs. USDC Growth
Perdata, USDT’s supply grew 2.42% last month, outpacing USDC’s 2.01%. The gap underscores Tether’s liquidity dominance, especially in emerging markets.
Historical Context: Why Did These Chains Fail?
Most legacy chains were early-stage projects with token sales but lacked ecosystem development. EOS, for instance, struggled after its $4B ICO in 2018. The absence of exchange support (few platforms list SLP or Omni wallets) further stifled adoption.
FAQ: Your Burning Questions Answered
Can I still use USDT on EOS after September 1?
No. All transactions will be frozen. Swap to TRON or Ethereum ASAP.
Will Tether support other L2 chains soon?
Likely. Tether prioritizes chains with strong DeFi activity—watch for announcements.
Is my USDT safe during the transition?
Yes, but act before deadlines. Delays risk liquidity bottlenecks.
