- Tether has explained that USDT transfers on the five blockchains will remain possible, but no new USDT will be issued or redeemed on those chains.
- Tether is shifting its focus to Ethereum, Tron and other high-demand networks.
- Analysts project the stablecoin market could reach $2 trillion by 2028 as U.S. regulatory support grows.
Tether has revised its previous plan to freeze USDT smart contracts on five legacy blockchains. Instead of freezing transfers, the company will allow continued token transfers while stopping new issuance and redemptions on those chains.
The change affects Omni Layer, Bitcoin Cash SLP, Kusama, EOS and Algorand, networks that now account for only a small portion of USDT circulation.
A shift from freezing to winding down
In July 2024 Tether announced it would halt redemptions and freeze token activity on the five chains as of September 1, 2025. In a statement released on August 29, the company appears to have adjusted that approach, opting to stop issuance and redemptions rather than fully freezing transfers.
After receiving feedback from the communities connected to those networks, Tether updated its plan. Transfers will remain possible, but the company will no longer mint or redeem tokens on these chains, effectively removing active support.
This decision marks the end of an era, especially for Omni Layer, which originally underpinned USDT issuance and still holds roughly $83 million in USDT. EOS follows with just over $4 million, while the remaining chains each hold less than $1 million.
By contrast, Ethereum and Tron dominate USDT’s footprint, together accounting for more than $150 billion issued.
Refocusing on high-demand ecosystems
The move reflects Tether’s strategy to concentrate on chains with deep liquidity and active developer communities.
Ethereum, Tron and BNB Chain remain the company’s primary networks, while newer platforms such as Arbitrum, Base and Solana are gaining traction—particularly for competing stablecoins like USDC.
By reducing focus on legacy blockchains, Tether aims to allocate resources toward ecosystems that offer scalability, user demand and better integration with broader digital finance infrastructures.
Stablecoins enter a new regulatory and market phase
Tether’s recalibration highlights the trade-off between honoring legacy obligations and pursuing future opportunities.
Although tokens on Omni, EOS and the other affected chains will remain transferable, the company’s attention is shifting to larger and more dynamic ecosystems.
At the same time, traditional financial players are exploring stablecoins to modernize remittances and improve currency conversion, suggesting broader adoption across payments and settlement use cases.
The timing of Tether’s decision coincides with growing political support for stablecoins in the United States. Recent U.S. legislative moves and regulatory attention aim to provide clearer frameworks for dollar-pegged digital assets.
U.S. Treasury estimates and market analysts suggest the stablecoin sector could grow from roughly $286 billion today to as much as $2 trillion by 2028, driven by broader adoption in payments, savings and cross-border transfers. Industry leaders have indicated that this expansion could accelerate further and potentially reach those figures within a few years.
As stablecoins expand into new financial rails, Tether’s shift reflects both current market realities and the evolving needs of a sector preparing for substantial, potentially trillion-dollar growth.