Tether Ends USDT Support on Five Blockchains by September 1
Stablecoin issuer Tether will cease support for its USDT token on five specific blockchain networks effective September 1. Concurrently, Tether will halt redemptions on these blockchains and freeze all remaining assets deposited into them.
- The firm cites infrastructure optimization and a shift towards blockchains with higher “utility, developer activity, and community engagement” as reasons for shutting down legacy networks.
- Tether’s USDT is the largest stablecoin by market capitalization.
Tether announced the move Friday, stating it would encourage holders of USDT on the affected chains to redeem their tokens as soon as possible or request an issuance on one of the supported blockchains.
This development continues a trend initiated last June when Tether halted its minting capability on Algorand and EOS (now branded as Vaulta). Similar decisions followed, withdrawing support for Bitcoin Cash, Kusama, and the Omni Layer Protocol in 2023.
The company acknowledged that while these legacy networks contributed to its early expansion, trading activity on its stablecoin across these specific chains has significantly waned in recent years.
Context and Commentary
Chief Executive Officer Paolo Ardoino framed the decision as adapting to the broader crypto market’s evolution, arguing that resources should be concentrated on platforms offering “greater scalability, developer activity, and community engagement,” positions from which sustainable stablecoin adoption might be driven.
Looking forward, Tether plans to concentrate its support on layer-2 solutions and blockchain ecosystems deemed more promising for future growth.
Beyond this specific decision, stablecoins like Tether’s USDT remain a central theme in the broader cryptocurrency landscape. Recent activity includes U.S. Treasury Secretary Scott Bessent’s suggestion that these dollar-linked assets could help reinforce U.S. dollar supremacy. Concurrently, legislative efforts in the U.S. are underway to clarify the regulatory status of stablecoins via bills like the Generic Tokenholder Investment and Stablecoin Act (GENIUS Act).
Accordingly, Tether’s USDT stablecoin boasts an approximate $160 billion market capitalization.
