Staggering Decision: Tether Severes Ties with Five Prominent Blockchains in Unforeseen Strategic Maneuver Worth $110 Billion
In a significant move aimed at enhancing scalability and developer engagement, Tether, the company behind the popular stablecoin USDT, has announced that it will cease supporting USDT on five legacy blockchains - Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand - effective September 1, 2025 [1][3][4].
Timeline and Process Details
Tether initiated this transition by halting new USDT mints on Omni, SLP, and Kusama in 2023. In mid-2024, similar mint halts started on EOS and Algorand. By September 1, 2025, all support for these blockchains will be phased out, with any remaining USDT on these chains being frozen indefinitely [1][3].
Users are advised to redeem or migrate their USDT holdings from these blockchains before this deadline to avoid losing access to their funds. Redemptions will remain available through official Tether channels, and some third-party providers may offer migration services [3].
Rationale
This strategic decision by Tether follows a comprehensive infrastructure review prioritizing scalability, developer engagement, and community adoption. The company aims to focus on more modern and active networks such as Ethereum, Tron, Solana, and emerging Layer-2 solutions like the Lightning Network [1][3].
Key Steps and Actions
- Past action (2023–2024): Tether halted new USDT mints on legacy chains.
- Deadline: September 1, 2025.
- After deadline: USDT on Omni, SLP, Kusama, EOS, Algorand will be frozen; no redemptions or transfers allowed.
- User action: Redeem or migrate USDT before September 1, 2025.
- Supported networks: Shift focus towards Ethereum, Tron, Solana, and Layer-2s.
Failure to migrate or redeem before the deadline results in permanent loss of access to those tokens [1][3][4]. Users holding USDT on these chains are encouraged to act immediately using official or trusted third-party tools to transfer their funds out.
Concerns and Analyses
Kevin Mehrabi, founder of StableTech, has expressed concerns about the potential impact on users who may be affected by the freeze. Some analysts have also questioned whether sunsetting tokens on public ledgers could raise concerns about centralization [2].
Additional Developments
- Circle's USDC is expanding on Ethereum Layer 2s.
- MakerDAO's DAI is becoming more composable through multi-chain vaults.
- Tether CEO Paolo Ardoino stated that this decision allows the company to focus on platforms offering greater scalability, developer activity, and community engagement.
[1] Tether Announces Phase-Out of USDT on Five Blockchains
[2] Impact of Tether's Decision to Discontinue Legacy Blockchains
[3] Tether's Action Plan for USDT Migration and Redemption
[4] Tether's Terms of Service
- Tether aims to enhance scalability and developer engagement by ceasing support for USDT on five legacy blockchains, including Omni, SLP, Kusama, EOS, and Algorand by September 1, 2025.
- Users are strongly advised to redeem or migrate their USDT holdings from these blockchains before September 1, 2025, to avoid losing access to their funds.
- After September 1, 2025, any remaining USDT on these chains will be frozen indefinitely, and no redemptions or transfers will be allowed.
- Tether has already halted new USDT mints on Omni, SLP, and Kusama in 2023, and similar mint halts started on EOS and Algorand in mid-2024.
- Tether focuses on more modern and active networks like Ethereum, Tron, Solana, and emerging Layer-2 solutions such as the Lightning Network.
- Some analysts and Kevin Mehrabi, founder of StableTech, have expressed concerns about the potential impact on users who may be affected by the freeze and the centralization implications of sunsetting tokens on public ledgers.
- Recognizing greater scalability, developer activity, and community engagement, Tether CEO Paolo Ardoino stated that this decision allows the company to focus on platforms offering these opportunities.
- Circle's USDC is expanding on Ethereum Layer 2s, while MakerDAO's DAI is becoming more composable through multi-chain vaults, signaling further developments in the crypto and DeFi landscape.
- As users hold their USDT on these legacy blockchains, they are encouraged to act immediately using official or trusted third-party tools to transfer their funds out via official Tether channels or migration services offered by certain third-party providers.
