Tether, the world’s largest stablecoin issuer, has announced that it will discontinue USDT support on five blockchains from September 1, 2025. The affected networks are Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. While the company will halt issuance and redemption of USDT on these blockchains, it clarified that smart contracts will not be frozen, allowing users to continue transferring tokens between wallets.
This update, shared on August 29, 2025, marks a significant shift in Tether’s blockchain strategy. Initially, in July 2024, Tether stated that it would freeze and redeem all tokens across the outdated networks. However, after receiving community feedback, the company revised its approach to allow ongoing peer-to-peer transfers without redemption rights. In other words, USDT tokens on these blockchains will still circulate but without official backing from Tether.
The decision reflects a broader strategic move by Tether to focus on blockchains with strong developer ecosystems, high scalability, and sustained user demand. As a result, the company will continue prioritizing support for networks such as Ethereum, Tron, Solana, and Polygon, where most USDT transactions already occur.
By ending support for these older chains, Tether aims to allocate resources more effectively, improve efficiency, and ensure that liquidity remains concentrated in the most active ecosystems. This mirrors a long-term industry trend where liquidity and adoption naturally gravitate toward fewer, more robust platforms.
Tether emphasized in its official statement that the company remains committed to a “smooth transition” and will continue engaging with the crypto community to maintain transparency during the process. Users are encouraged to migrate their holdings to supported blockchains in order to retain full functionality, including redemption and new issuance.
Interestingly, this announcement comes shortly after Tether revealed the launch of USDT on the RGB protocol, a new Bitcoin-based solution for issuing digital assets. The company sees this as a milestone that will make stablecoins more accessible within the Bitcoin ecosystem, allowing USDT to function natively alongside BTC.
Paolo Ardoino, Tether’s CEO, underlined the importance of the move, stating that Bitcoin deserves a native stablecoin that can drive further innovation and adoption. This new expansion underscores Tether’s dual strategy of abandoning outdated infrastructures while embracing next-generation solutions aligned with market demand.
Conclusion
The discontinuation of USDT support on Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand marks a pivotal restructuring of Tether’s blockchain operations. By focusing on ecosystems with greater scalability and adoption potential, Tether is positioning itself for long-term dominance in the stablecoin market. At the same time, its integration with the RGB protocol signals a commitment to innovation and deeper alignment with Bitcoin’s ecosystem. For users, the key takeaway is clear: migrate to supported blockchains to ensure continued redemption and utility of USDT.
