Ethereum News Today: Tether Discontinues USDT on 5 Blockchains Effective September 2025, Migrates to High-Activity Chains Due to Declining Engagement and Costs

Tether Limited, the issuer of the widely used stablecoin USDT, has announced the discontinuation of USDT support on five blockchains—Omni, Bitcoin Cash SLP (BCH SLP), Kusama, EOS, and Algorand—effective September 1, 2025. The move requires users to migrate their tokens to supported chains, such as Ethereum, Tron, or Solana, by the specified deadline. Any remaining USDT on the affected networks will become permanently frozen, rendering them irredeemable and non-transferable [1]. The announcement, first detailed on July 11, 2025, followed by a later report on July 28 [2], reflects Tether’s strategic pivot to optimize resources and prioritize high-activity protocols.

The decision centers on two primary factors: declining user engagement on the legacy networks and the operational costs of maintaining nodes for low-volume transactions. Tether cited Ethereum, Tron, and Solana as its preferred chains, emphasizing their robust developer ecosystems and transaction efficiency [1]. The migration also aligns with broader industry trends, as stablecoin issuers increasingly prioritize compliance and scalability amid regulatory scrutiny. For instance, Bitcoin Cash (BCH), a contentious Bitcoin fork, and Algorand (ALGO), a proof-of-stake network, were explicitly named as affected platforms, signaling Tether’s focus on chains perceived as technically resilient and aligned with global financial standards [2].

Users holding USDT on the affected blockchains must act swiftly. The most straightforward approach involves transferring tokens to centralized exchanges like Binance, Coinbase, or Bybit, which automatically convert them to supported chains. This process avoids cross-chain bridge fees and ensures seamless liquidity. Alternatively, holders can redeem frozen tokens via Tether’s official platform, though this requires KYC verification and a minimum redemption of $100,000, with restrictions for non-U.S. residents [1]. Cross-chain bridges are another option, but they demand technical expertise and awareness of potential congestion near the deadline. Tether recommends completing migrations by August 31 to mitigate last-minute complications.

The deprecation of USDT on these networks has sparked debates about the sustainability of smaller blockchain ecosystems. While USDT’s withdrawal reduces interoperability for projects reliant on the affected chains, it underscores the growing influence of stablecoin issuers in shaping network adoption. Analysts note that Tether’s decision reinforces its market dominance, as competitors like USDC and DAI continue expanding their blockchain partnerships [2]. However, the move also raises questions about long-term liquidity dynamics, particularly if users shift en masse to Ethereum, Tron, or Solana.

Market reactions have been mixed. Ethereum’s price briefly dipped below $3,800 following the announcement, though broader crypto markets remained stable. The transition period offers approximately two months for users to adjust, with Tether providing migration tools and guidance. Smaller blockchain communities face challenges in retaining user bases, but the consolidation of USDT activity on high-throughput chains may ultimately enhance security and efficiency for the stablecoin’s global user base [2].

Sources:

[1] https://coinmarketcap.com/community/articles/6888577ffb184a125f70cf10/

[2] https://www.coinbase.com/en-br/price/algorand