- Tether has said that while USDT transfers on the five blockchains will remain possible, no new USDT will be issued or redeemed on those chains.
- Tether is shifting its focus to Ethereum, Tron and other networks with high demand.
- The stablecoin market is expected to reach $2 trillion by 2028 amid rising U.S. support.
Tether has revised its earlier plan to freeze USDT smart contracts on five legacy blockchains, opting instead to allow users to continue transferring tokens while halting new issuance and redemptions on those chains.
The change affects Omni Layer, Bitcoin Cash SLP, Kusama, EOS and Algorand — networks that together now represent only a small fraction of circulating USDT.
A shift from freezing to phase-out
In July 2024 Tether announced it would stop redemptions and freeze tokens on the five chains starting September 1, 2025. In a statement from August 29, however, the company appears to have reversed the freeze decision and chosen to cease issuance and redemption instead.
That update followed feedback from the communities tied to those blockchains, prompting Tether to revise its approach.
While transfers will remain possible, Tether will no longer mint or redeem USDT on these chains, effectively leaving them unsupported going forward.
This move marks the end of an era for Omni Layer in particular — once the original backbone for USDT issuance — which now holds just under $83 million in USDT. EOS follows with slightly over $4 million, while the remaining chains each account for less than $1 million.
By contrast, Ethereum and Tron dominate USDT issuance, with more than $150 billion issued across those networks combined.
Focus shifts to high-demand ecosystems
The decision underscores Tether’s strategy to concentrate on chains with deep liquidity and active developer ecosystems.
Ethereum, Tron and BNB Chain remain the company’s prioritized networks, while newer platforms such as Arbitrum, Base and Solana are gaining traction — particularly for competing stablecoins like USDC.
By reducing support for legacy chains, Tether aims to allocate resources toward ecosystems that offer scalability, stronger user demand and better integration with broader digital finance.
Stablecoins entering a new political era
Tether’s recalibration highlights the balancing act between legacy obligations and future opportunities.
Although tokens on Omni, EOS and other sunsetted chains can still be transferred, the company’s focus is firmly on larger, more dynamic ecosystems.
At the same time, traditional financial players such as Western Union are exploring stablecoins to modernize money transfers and improve currency conversion, signaling broader adoption across the industry.
Timing also aligns with growing political support for stablecoins in the United States. The recent GENIUS Act, signed by President Trump, gives regulatory backing to dollar-linked digital assets as tools that can extend U.S. currency influence in digital markets.
Additionally, the U.S. Treasury expects the stablecoin sector could surpass $2 trillion by 2028, up from its current size of roughly $285.9 billion. Executives in the digital asset industry have suggested growth could accelerate even faster, potentially reaching that milestone within a few years.
As stablecoins expand into payments, savings and cross-border remittances, Tether’s move reflects both market realities and the needs of an industry preparing for rapid, trillion-dollar-scale growth.