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

• Why Is Tether Dropping Support for These Blockchains?
• How Will the Freeze Affect Token Holders?
• What’s Next for Tether’s Expansion?
• Could This Shake Up Stablecoin Dynamics?
• FAQs: Your Burning Questions Answered

Tether, the issuer of the world’s largest stablecoin USDT, is pulling the plug on five legacy blockchains—Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand—effective September 1. The move aims to streamline operations and focus on high-activity networks like TRON and Ethereum. With less than $100M combined USDT on these chains, the impact is minimal, but token holders must act fast to migrate assets. Meanwhile, Tether eyes Layer 2 expansion to compete with USDC’s dominance. Here’s the full breakdown.

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 dwindling usage and a strategic shift toward scalable ecosystems. Paolo Ardoino, CEO of Tether, stated, “Sunsetting these legacy chains lets us double down on platforms with robust developer activity and community engagement—key drivers for stablecoin adoption.” Data from CoinGlass reveals these five chains collectively hold under 0.05% of USDT’s $160B+ supply, with EOS hosting just $4.3M and Omni $87M. Most projects on these chains failed to build sustainable DeFi ecosystems, becoming relics of the 2017-2019 token-sale boom.

How Will the Freeze Affect Token Holders?

After September 1, USDT on these chains will be frozen—no new minting or redemptions. Holders must swap tokens via cross-chain tools or request reissuance on supported networks like TRON or Ethereum. Exchanges like BTCC and Binance typically offer migration services, but users should confirm compatibility. Pro tip: Act now to avoid liquidity crunches; some chains (looking at you, Algorand with your $841K USDT) lack ready alternatives.

What’s Next for Tether’s Expansion?

Tether plans aggressive moves into Layer 2 networks (L2s) like Arbitrum and Base, where rival USDC currently thrives. Arbitrum alone holds billions in USDC due to its DeFi-friendly infrastructure. “We’re playing catch-up on L2s,” admitted a BTCC analyst. “But with TRON minting 22B USDT year-to-date and outpacing ethereum in daily users, Tether’s still the heavyweight.” Recent supply spikes—USDT grew 2.42% monthly versus USDC’s 2.01%—highlight its grip on stablecoin liquidity.

Could This Shake Up Stablecoin Dynamics?

Unlikely. The affected chains represent niche use cases, while TRON and Ethereum process 90%+ of USDT transactions. However, the sunset signals Tether’s ruthless prioritization of scale. As DeFi matures, expect more consolidation—legacy chains without developer traction (sorry, Kusama’s 239K USDT) risk becoming ghost towns. One wildcard: if Vault’s EOS rebranding revives liquidity, Tether might revisit support.

FAQs: Your Burning Questions Answered

What happens if I don’t migrate my USDT by September 1?

Your tokens will be frozen indefinitely. While they’ll remain on-chain, you won’t be able to transfer or redeem them.

Which exchanges support USDT migrations?

BTCC, Binance, and OKX offer cross-chain swaps. Check their official channels for step-by-step guides.

Why is TRON absorbing most new USDT minting?

TRON’s low fees and high throughput make it ideal for retail and remittance use—key to Tether’s emerging-market dominance.