Tether Streamlines Blockchains, Shifts Focus to Bitcoin-Based Solutions

Tether, the largest stablecoin issuer, has updated its transition plan for five legacy blockchains, halting issuance and redemption but keeping smart contracts active for wallet-to-wallet transfers. The company is focusing on scalable networks and Bitcoin-native solutions, including the launch of USDT on the RGB protocol, which allows users to hold the stablecoin natively alongside BTC in compatible wallets.

Tether, the world's largest stablecoin issuer, has revised its transition plan for five legacy blockchains, halting the issuance and redemption of USDT but keeping smart contracts active for wallet-to-wallet transfers. This move comes as part of Tether's broader strategy to focus on scalable networks and Bitcoin-native solutions [1].

Impact on Users and Developer Ecosystems

Individuals holding USDT on the affected blockchains—Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand—are advised to move or redeem their tokens before September 1, 2025, as the assets will become frozen and irreversible [1]. The supply of USDT on these networks is modest, with a total of tens of millions of dollars compared to billions on Ethereum and Tron. The freeze might alter liquidity and introduce price volatility, prompting users to transfer their assets to supported networks [1].

Tether's Broader Strategic Direction

Tether is outgrowing antique blockchains to concentrate on faster and more reliable networks, enhanced developer support, and unified stablecoin integration. The company continues to add USDT to new Layer-2 networks, including Avalanche, Polkadot, NEAR, Ton, Celo, Kava (Cosmos), and Solana, while remaining highly supplied to Ethereum and Tron [1].

Launch of Native USDT on Bitcoin

Tether plans to issue USDT natively on the Bitcoin network using the RGB protocol, enhancing liquidity and access for Bitcoin transactions. This development eliminates the reliance on other networks for Bitcoin purchases using USDT and allows users to hold and transfer the stablecoin alongside BTC in compatible wallets [2]. The launch is expected to boost Bitcoin liquidity and offer a more seamless route for users to interact with BTC through stable assets.

Conclusion

By September 1, 2025, Tether will cease to allow individuals to redeem or utilize USDT on the Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. The company is focusing on scalable and active networks to remain relevant in the fast-evolving blockchain landscape. Users are advised to move their USDT tokens to supported networks to avoid losing them forever [1].

References

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