- Tether announced that while USDT transfers will remain possible on five blockchains, no new USDT will be issued or redeemed on those chains.
- Tether is shifting its focus toward Ethereum, Tron and other networks with strong demand.
- The stablecoin market is projected to reach $2 trillion by 2028 amid growing U.S. support.
Tether revised its earlier plan to freeze USDT smart contracts on five legacy blockchains. Instead of a hard freeze, the company will allow token transfers to continue 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 portion of USDT circulation.
From Freezing to Gradual Phase-Out
In July 2024, Tether said it would stop redemptions and freeze tokens on the five chains starting September 1, 2025. In a statement issued on August 29, the company reversed the freeze decision and opted to suspend issuance and redemptions instead.
After receiving feedback from communities tied to these blockchains, Tether reassessed its approach.
Although transfers will remain possible, Tether will no longer mint or redeem tokens on these chains, effectively ending active support for them.
This marks the close of an era for Omni Layer in particular, which was once the primary platform for issuing USDT and now holds under $83 million in value on-chain.
EOS holds just over $4 million, while the remaining chains each carry less than $1 million in USDT.
By contrast, Ethereum and Tron dominate the stablecoin footprint, with more than $150 billion issued across those networks.
Focus Moves to High-Demand Ecosystems
The decision highlights Tether’s strategy to consolidate around chains with deep liquidity and active developer communities.
Ethereum, Tron and BNB Chain remain the company’s core networks, while newer platforms such as Arbitrum, Base and Solana are gaining traction—especially for competing stablecoins like USDC.
By reducing emphasis on legacy blockchains, Tether aims to redirect resources to ecosystems that offer scalability, stronger user demand and greater integration with broader digital finance infrastructure.
Stablecoins Enter a New Political Era
Tether’s recalibration underscores the balance between legacy obligations and future opportunities.
While tokens on Omni, EOS and the other impacted chains remain transferable, the company’s focus is firmly on larger, more dynamic ecosystems.
Traditional financial firms, including payments providers, are exploring stablecoins to modernize remittances and improve currency conversion, signaling broader institutional interest.
The timing of Tether’s move coincides with increasing political support for stablecoins in the United States.
A recent legislative development known as the GENIUS bill, signed by President Trump, provides regulatory clarity for dollar-pegged digital assets and aims to extend the influence of the U.S. dollar in digital markets.
Additionally, the U.S. Treasury projects that the stablecoin sector could surpass $2 trillion by 2028, up from the current market size of about $285.9 billion.
Executives in the industry have suggested growth could accelerate even faster, potentially reaching that milestone within a few years.
As stablecoins expand their role in payments, savings and global transfers, Tether’s strategic shift reflects market realities and the sector’s preparations for substantial growth in the years ahead.