Tether Shifts Focus, Abandons Freeze Plan for Legacy USDT

Tether has abandoned its plan to freeze USDT on legacy blockchains, including Omni Layer, EOS, and Algorand, opting to categorize them as "unsupported" instead. Users can still transfer USDT tokens, but the assets will no longer receive official backing. Tether plans to focus on higher-traffic, secure blockchains like Bitcoin and Ethereum for future USDT issuance. This new strategy aims to reduce operational burden and avoid reputational risks.

Tether, the issuer of the world's largest stablecoin USDT, has announced a significant change in its strategy regarding legacy blockchains. Originally, Tether planned to freeze USDT tokens on networks including Omni Layer, BCH SLP, Kusama, EOS, and Algorand starting September 1, 2025. However, following extensive feedback from user communities, Tether has decided to abandon this plan and instead categorize these tokens as "unsupported."

This new approach means that users can still transfer USDT tokens between wallets, but the assets will no longer receive official backing from Tether. The company will discontinue direct issuance and redemption on these blockchains, effectively leaving the tokens in a financial limbo. This move aligns with Tether's broader strategic focus on active, high-demand chains [1].

The decision to walk back the freeze was likely driven by the reputational risk it posed. Tether is instead opting for a pragmatic compromise that allows it to shed the operational burden of supporting low-traffic chains while avoiding the public relations nightmare of destroying user assets [2].

In parallel, Tether is expanding its support to more active and secure blockchains. Just one day prior to this announcement, Tether revealed plans to launch a native USDT on Bitcoin via the RGB protocol. This move is seen as Tether's strategic bet on Bitcoin's foundational security, aiming to enhance liquidity and access for Bitcoin transactions [3].

By focusing on higher-traffic, secure blockchains, Tether aims to reduce operational burden and avoid reputational risks. This strategy is expected to improve the scalability, efficiency, and relevance of USDT in the cryptocurrency ecosystem.

References:
[1] https://crypto.news/tether-halts-usdt-freeze-on-legacy-chains/
[2] https://coinfomania.com/tether-unveils-transition-plan-for-legacy-blockchains/
[3] https://cryptofrontnews.com/tether-to-launch-native-usdt-on-bitcoin-network-via-rgb-protocol/