Tether has announced its decision to discontinue support for its USDT stablecoin on five blockchains it considers outdated or lacking sufficient user activity. Beginning September 1, the company will cease operations on Algorand, Bitcoin Cash, EOS, Kusama, and Omni. This move includes halting redemptions and freezing all remaining tokens on these networks.
The decision follows Tether’s earlier move in August 2023, when it stopped minting USDT on Bitcoin Cash, Kusama, and Omni. Although redemptions remained active until now, the latest update signals a complete phase-out. The company emphasized that the decision aims to allow for a more efficient allocation of resources, enabling it to prioritize platforms showing stronger growth prospects, higher user activity, and continued development.
Omni’s Decline and the Rise of Alternatives
Among the five blockchains being retired, Omni stands out for its historical significance. It was the original network to host USDT on Bitcoin in 2014. However, Tether acknowledged that Omni’s relevance has diminished due to the rise of faster and more scalable alternatives. With newer options offering improved interoperability and reduced transaction costs, the shift toward more modern networks has become inevitable.
The company highlighted that its future development focus will lean heavily on Layer 2 networks and emerging blockchain ecosystems, including the Lightning Network. These platforms promise enhanced scalability and cost-efficiency, aligning with Tether’s evolving strategic priorities.
Minimal Circulation Behind the Decision
Data cited by the company illustrates the limited adoption of USDT across the affected blockchains. On Kusama, only $250,000 worth of USDT remains active out of the $3.5 million ever issued. Bitcoin Cash maintains less than $1 million in circulation, while Omni holds $82 million from an original total of $888 million. EOS carries about $5 million in USDT, and Algorand has just $841,000 circulating.
Tether to Wind Down USD₮ Support for Five Legacy Blockchains as Part of Strategic Infrastructure Review
Learn more: https://t.co/MxVGdUnEhA— Tether (@Tether_to) July 11, 2025
In contrast, Ethereum and Tron dominate Tether’s ecosystem, jointly hosting more than $155 billion in active USDT supply. This massive disparity underscores the company’s shift to concentrate efforts where customer demand and network activity are highest.
Tether explained that this operational adjustment aligns with how its stablecoin is being effectively utilized and reflects a broader intention to adapt its infrastructure to blockchain environments that continue to demonstrate technological relevance and sustained user interest.
Regulatory Climate and Future Outlook
This strategic move coincides with significant regulatory developments in both the United States and the European Union. In the U.S., a bill focused on stablecoin regulation is gaining traction, while Europe’s Markets in Crypto-Assets (MiCA) framework has already taken effect. These evolving regulatory conditions have prompted several platforms to scale back or eliminate their exposure to USDT, suggesting a shifting landscape for stablecoin providers.
Tether has advised all users still holding USDT on the soon-to-be-deprecated networks to withdraw or migrate their balances before the September 1 cutoff. Post-deadline, remaining tokens will be frozen, and further redemptions will no longer be processed.
Looking ahead, the company reiterated its commitment to seeking new blockchain integrations, specifically those offering high scalability and maintaining active user bases. This strategy is expected to reinforce Tether’s position in the increasingly competitive stablecoin market, where efficiency, adaptability, and compliance are becoming more critical than ever.
