Bitcoin News Today: Tether Shifts Focus to Future-Ready Blockchains, Abandons Outdated Networks

Tether, the issuer of the world’s largest stablecoin USDT, has updated its strategy for transitioning away from five legacy blockchains—Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. Originally announced in July 2024, the plan had called for a complete cessation of redemptions and the freezing of USDT tokens on these chains beginning September 1, 2025. However, in response to community feedback, the company has revised its approach to exclude the freezing of smart contracts on these networks, though it will discontinue direct issuance and redemption services [1].

Under the revised plan, users will still be able to transfer their USDT tokens between wallets on these legacy blockchains, but the tokens will no longer be officially supported like Tether’s more actively used counterparts. This move reflects Tether’s broader strategy to allocate resources toward blockchains with stronger developer activity, scalability, and user demand [2]. The company emphasized that this decision followed a comprehensive review of market usage data, stakeholder feedback, and infrastructure partner insights, indicating that USDT activity on these chains has significantly declined over the past two years.

The decision to shift focus from these legacy networks also aligns with Tether’s ongoing efforts to expand support for layer 2 solutions and newer blockchains that offer improved interoperability and transaction speeds. CEO Paolo Ardoino has previously stated that ending support for underutilized blockchains allows the company to prioritize platforms that offer greater scalability and developer engagement. Tether has already begun integrating USDT onto faster and more active networks, including Avalanche, Polkadot, NEAR, Solana, and the Lightning Network [3].

The impact of this transition is expected to be relatively limited due to the relatively small supply of USDT on these legacy chains, estimated in the tens of millions of dollars compared to billions on more popular chains like Ethereum and Tron. Nevertheless, users holding USDT on the affected blockchains are advised to redeem or move their tokens before the transition date. Once the shift is complete, these tokens will no longer be redeemable, and their functionality will be effectively frozen [3].

Tether has also expanded its integration into the Bitcoin ecosystem, recently announcing that USDT will be available on the Bitcoin network via the RGB Layer 2 protocol. This development enables stablecoin transactions on what Tether describes as the world’s most secure and decentralized network, enhancing privacy and transaction efficiency. The RGB protocol allows for the execution of smart contracts and asset issuance on Bitcoin, a feature previously more commonly associated with other major blockchains such as Ethereum. Tether’s CEO emphasized the importance of this move in making Bitcoin more usable for everyday transactions, reinforcing the company’s long-term vision for the cryptocurrency’s role in global finance [4].

Tether continues to maintain a strong presence on leading blockchains and has reiterated its commitment to transparency and community engagement during this transition. The company has also underscored the importance of adapting to evolving market conditions and technological advancements to ensure the continued relevance and utility of its stablecoin. As the cryptocurrency landscape continues to mature, Tether’s strategic adjustments reflect a broader industry trend toward prioritizing scalability, efficiency, and user-centric innovations.

Source:

[1] Tether Provides Update on Transition Plan for Legacy Blockchains (https://tether.io/news/tether-provides-update-on-transition-plan-for-legacy-blockchains/)

[2] Tether revises wind-down strategy for Omni, Bitcoin Cash ... (https://cryptobriefing.com/tether-blockchain-transition-update/)

[3] Tether Unveils Transition Plan for Legacy Blockchains! (https://coinfomania.com/tether-unveils-transition-plan-for-legacy-blockchains/)

[4] Tether Brings USDT to Bitcoin Via Layer-2 Network RGB (https://decrypt.co/337203/tether-brings-usdt-bitcoin-layer-2-network-rgb)