Tether Ends USDT Support on Five Blockchains by September 1

Tether, the world's largest stablecoin issuer, has announced a strategic decision to discontinue support for its stablecoin, USDT, on five blockchains: Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand. This move, effective by September 1, is part of a broader infrastructure review aimed at streamlining Tether's multi-chain footprint. The company cited dwindling activity on these networks as the primary reason for the shift, focusing instead on chains with stronger adoption and scalability.

The removal of these chains marks the end of an era for networks that once played a significant role in Tether's early growth. Omni, the original home of USDT, processed over $7 million worth of transactions and attracted more than 400,000 users during its peak. EOS, despite its controversies, once boasted monthly user figures north of 30 million, driven by integrations with platforms like MetaMask. However, sustained usage on these networks has significantly declined, leading Tether to formally end support for redemptions and freeze tokens by September.

Tether CEO Paolo Ardoino explained the rationale behind the decision, stating, "Sunsetting support for these legacy chains allows us to focus on platforms that offer greater scalability, developer activity, and community engagement — all key components for driving the next wave of stablecoin adoption." This strategic realignment underscores Tether's commitment to optimizing its infrastructure and ensuring that USDT remains a dominant force in the stablecoin market.

The impact of this decision extends beyond Tether's internal operations. Projects built on the affected chains now face critical choices: migrate liquidity to other networks, lobby for alternative stablecoins, or risk becoming isolated. Tether has given users until September 1 to redeem or migrate their holdings, but the urgency is clear for these ecosystems to demonstrate their continued relevance.

Tether's focus has shifted towards Layer 2 networks like Lightning and active ecosystems such as Ethereum and Tron, which already host the majority of USDT supply. The company now issues USDT across a dozen networks, including Solana, Polkadot, Avalanche, and TON. This strategic pivot signals Tether's intention to concentrate on high-volume, high-activity chains, effectively ending the era of maintaining low-volume networks. The move is expected to enhance the efficiency and scalability of USDT, positioning it for continued growth and adoption in the rapidly evolving crypto landscape.