Tether, the leading issuer of stablecoins, has announced it will phase out support for five older blockchains: Omni Layer, Bitcoin Cash’s Simple Ledger Protocol (SLP), Kusama, EOS, and Algorand. According to Tether CEO Paolo Ardoino, this pivotal move will enable the company to retarget their capital. They want to harmonize their investments in platforms that offer greater scalability, support improved community involvement, and lead to increased overall adoption. Assistance will terminate on September 1, 2025. That USDC conversion window line item 5 above allows users two months to move their assets over.
There are a few major reasons influencing the decision to discontinue support for these blockchains. Its usage has plummeted, developer activity is practically non-existent, and its transaction volumes are far below expectations. By focusing first on the most efficient, interoperable, and widely adopted platforms possible, Tether wants to lead with speed, interoperability, and adoption. Amid the calamity, Tether has consistently assured users that they are able to redeem their Tethers via official channels. This creates an orderly transition for any worker impacted by the recent regulatory shift.
Reasons for the Transition
In its 2021 report, Tether looked closely at the past performance and future prospect of five different blockchains. They resolved to cut their economic support for them. Usage started to drop and the company realized that people were abandoning the product. This nearly 10% drop indicates that users are not using or looking for USDT tokens on these exchanges. Minimal developer activity shatteringly signals a lack of innovator potential capacity for these blockchain ecosystems. This institutional inertia keeps us from doing better and getting bigger.
Declining transaction volumes played into this decision as well, mirroring reduced economic activity and usefulness of USDT on these networks. By consolidating its efforts on more vibrant and active blockchains, Tether aims to optimize its infrastructure and deliver a superior user experience. Further, this move is in concert with Tether’s overall efforts to ensure that they work to provide a strong, efficient, stablecoin ecosystem.
Impact on Users and Migration Options
This will end support for users with USDT tokens on the Omni Layer, Bitcoin Cash’s SLP, Kusama, EOS, and Algorand blockchains. This amendment will drastically improve things for those users. After September 1, 2025, users will no longer be able to redeem their USDT tokens directly on these exchanges. Looking forward to this change taking effect! Nonetheless, Tether has committed to its users that redemptions will continue to be available through Tether’s official redemption channels.
For now, third-party providers like the precipitation firm Circle will allow users to gradually move their USDT tokens out to other supported blockchains. They even provide for direct redemption. We hope all users will take time to come test these exciting new alternatives to make for a smooth, efficient transition. Tether’s forward-looking approach is designed to avoid disruption, maximizing the path available for users to exit into traditional banking channels with their assets.
Tether's Future Strategy
Recently, Tether announced that it would stop supporting specific blockchains. This step reaffirms their pledge to lead with innovation and efficiency in the burgeoning stablecoin marketplace. Tether looks for platforms that have the potential to get more scalability, more interoperability, and more adoption. This strategy is designed to reinforce its position as the world’s dominant stablecoin issuer. This strategic pivot will allow Tether to focus resources in a more impactful way and produce a better user experience across the board.
Commenting on the announcement, Tether’s CTO, Paolo Ardoino, laid focus on the need to evolve with the ongoing demands of the cryptocurrency ecosystem. The company’s emphasis on speed and interoperability speaks to its commitment to creating a more connected and inclusive financial ecosystem. Strategic moves by Tether USDT to increase its adoption. These moves are part of its larger goal to ensure it remains a leading player in the growing digital economy.
