- Tether has stated that while USDT transfers on the five legacy blockchains will remain possible, no new USDT will be issued or redeemed on those chains.
- Tether is shifting its focus to networks with higher demand such as Ethereum, Tron and other active ecosystems.
- The stablecoin market is projected to reach $2 trillion by 2028 amid growing support in the United States.
Tether has revised its earlier plan to freeze USDT smart contracts on five legacy blockchains. Instead of a full freeze, the company will allow token transfers to continue on those chains while halting issuance and redemptions.
This update affects Omni Layer, Bitcoin Cash SLP, Kusama, EOS and Algorand—networks that now represent only a small fraction of total USDT circulation.
A shift from freezing to phasing out
In July 2024, Tether announced it would stop redemptions and freeze tokens on the five chains effective September 1, 2025. In an update issued on August 29, the company reversed the freeze and chose to stop minting and redeeming instead.
Following feedback from the communities tied to these blockchains, Tether adjusted its approach.
While transfers will remain possible, Tether will no longer mint or redeem tokens on these chains, effectively ending active support for them.
This move marks the close of an era for Omni Layer in particular, which once served as the primary issuance platform for USDT and currently holds roughly $83 million in supply.
EOS retains just over $4 million, while the remaining legacy chains each hold less than $1 million.
By contrast, Ethereum and Tron dominate the stablecoin footprint, with more than $150 billion issued across those networks combined.
Focus shifts to high-demand ecosystems
The decision underscores Tether’s strategy to consolidate around chains that offer strong liquidity and developer activity.
Ethereum, Tron and BNB Chain remain the company’s prioritized networks, while newer platforms such as Arbitrum, Base and Solana are gaining traction—especially for competing stablecoins like USDC.
By reducing attention on older blockchains, Tether aims to concentrate resources on ecosystems that promise scalability, user demand, and broader integration with digital finance.
Stablecoins entering a new political era
Tether’s recalibration highlights the trade-off between honoring legacy commitments and pursuing future opportunities.
Although tokens on Omni, EOS and the other legacy chains remain transferable, the company’s focus is firmly on larger, more dynamic ecosystems.
At the same time, traditional financial players are exploring stablecoins to modernize remittances and improve currency conversion—signaling a wider wave of adoption.
The timing of Tether’s move coincides with growing political backing for stablecoins in the United States.
Legislation recently signed by President Trump, the GENIUS Act, provides regulatory support for dollar-linked digital assets as a tool to extend U.S. currency influence in digital markets.
Additionally, the U.S. Treasury projects the stablecoin sector could exceed $2 trillion by 2028, up from about $285.9 billion today.
Executives in the industry have suggested this growth could occur even faster, possibly reaching that scale within a shorter time frame.
As stablecoins expand into payments, savings and global transfers, Tether’s strategic shift reflects market realities and the evolving needs of a sector preparing for potential trillion-dollar growth.