- Tether announced that while transfers of USDT on five blockchains will remain possible, no new USDT will be issued or redeemed on those chains.
- Tether is shifting focus toward Ethereum, Tron and other high-demand networks.
- With rising support in the United States, the stablecoin market is projected to reach $2 trillion by 2028.
Tether has revised its earlier plan to freeze USDT smart contracts on five legacy blockchains. Instead of freezing tokens, the company will allow users to continue transferring USDT on those chains but will stop issuing and redeeming tokens there.
The change affects Omni Layer, Bitcoin Cash SLP, Kusama, EOS and Algorand — networks that together now represent only a small fraction of USDT’s circulating supply.
From freezing to phased discontinuation
In July 2024, Tether announced it would stop redemptions and freeze tokens on five chains starting September 1, 2025. However, in an August 29 update, the company revised that approach: rather than freezing balances, it will halt issuance and redemption.
That decision was adjusted further after feedback from communities tied to those blockchains.
Transfers will remain possible, but Tether will no longer mint or redeem tokens on these networks, effectively ending active support for them.
This move signals the winding down of the Omni Layer era. Omni was the original foundation for USDT issuance and currently holds just under $83 million in USDT. EOS follows with slightly over $4 million, while the other legacy chains each hold under $1 million.
By contrast, Ethereum and Tron dominate the stablecoin landscape, with more than $15 billion issued between them.
Shifting focus to high-demand ecosystems
The decision highlights Tether’s strategy to concentrate resources on chains with deep liquidity and active developer communities.
Ethereum, Tron and BNB Chain remain the company’s priority networks, while newer platforms such as Arbitrum, Base and Solana are gaining attention — particularly in competition with USDC.
By reducing emphasis on legacy chains, Tether aims to streamline operations and allocate resources toward ecosystems that promise scalability, meet user demand, and better integrate with broader digital finance.
Stablecoins enter a new policy era
Tether’s realignment underscores the balance between honoring legacy commitments and pursuing future opportunities.
While tokens on Omni, EOS and other deprecated chains will still be transferable, the company’s focus is clearly on larger, more active ecosystems.
Meanwhile, traditional financial firms like Western Union are exploring stablecoins to modernize remittances and improve currency exchange, indicating broader potential adoption.
The move also coincides with growing U.S. policy support for stablecoins. Recent legislation and regulatory shifts have aimed to provide clearer frameworks for dollar-pegged digital assets.
U.S. policymakers and institutions project the stablecoin industry could expand significantly — the Treasury estimates the market could exceed $2 trillion by 2028, up from roughly $285.9 billion today.
Executives in the sector believe growth could accelerate even faster, potentially reaching these levels within a few years.
As stablecoins expand into payments, savings and global transfers, Tether’s adjustment reflects current market realities and the industry’s effort to prepare for multitrillion-dollar growth.