- Tether halts minting and direct redemptions on Omni, BCH SLP, Kusama, EOS, Algorand, without freezing existing tokens balances.
- USDT may continue circulating where wallets and exchanges support these rails, though liquidity and tooling could gradually decline.
As we previously reported in ETHNews, now Tether has revised its plan for five legacy networks. The issuer will stop minting and direct redemptions of USDT on Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand, but it will not freeze tokens that already exist on those chains. Earlier guidance urged holders to redeem or migrate. The new stance follows user feedback from those networks and aims to keep balances movable while Tether reallocates operational resources.
Tether adds that it:
“remains committed to a smooth transition and will continue to work with the community to ensure transparency and clarity throughout this process.”
Practically, USDT will continue to circulate where wallets and exchanges still support these rails. Over time, however, liquidity and tooling may thin out as service providers shift attention to busier networks.
By choosing not to freeze, Tether reduces the risk of stranded balances and forced selling at poor prices, but holders should still plan for declining convenience on the affected chains.
Tether says the adjustment aligns with a broader strategy to concentrate support on networks with higher developer activity, better throughput, and stronger user demand. In plain terms, the company is narrowing its menu to where usage is deepest and maintenance is more efficient.
It also pledged to coordinate with stakeholders and publish clear updates to ensure transparency during the transition—a promise that matters when money moves across multiple rails.
For holders, the checklist is straightforward. First, confirm whether your exchange or custodian still processes deposits and withdrawals on the impacted chains. Second, consider migrating USDT to a currently supported network through native withdrawal options, bridges vetted by your provider, or direct redemption where available. Fees, limits, and timelines vary by venue, so review them before moving. Keep transaction records, and test with small amounts before a full transfer.
Market-wise, the decision points to a soft landing rather than an abrupt shutdown. Liquidity will likely flow toward networks where USDT usage is highest. As the tide shifts, careful execution—by both users and service providers—will determine how smooth the changeover feels in practice.
The latest updates today include three important developments:
- Tether minted $3 billion USDT on Ethereum in the last three days, reinforcing liquidity across DeFi protocols and centralized exchanges.
- Tether reversed its decision to end support for EOS, Algorand, OmniLayer, BCH-SLP, and Kusama, after regulatory and user pressure. This reversal ensures that USDT remains accessible on multiple networks, preserving its multi-chain presence.
- Tether’s market share dropped below 60% for the first time since March 2023, signaling growing competition from other stablecoins like USDC and DAI, as well as new entrants in the regulated stablecoin sector.
From a blockchain perspective, Tether continues to operate as a multi-chain stablecoin, with its ERC-20 version on Ethereum being the most widely used. Its role as the primary settlement layer for trading pairs across centralized and decentralized exchanges underscores its importance in global liquidity.
