- Tether says transfers of USDT on five blockchains will remain possible, but new issuance and redemptions will cease.
- Tether is shifting focus to high-demand networks such as Ethereum and Tron.
- With growing U.S. support, the stablecoin market is forecast to reach $2 trillion by 2028.
Tether has adjusted its earlier plan to freeze USDT smart contracts on five blockchains. Instead of freezing, the company will stop issuing and redeeming USDT on those chains while allowing users to continue transferring tokens.
The change affects networks that currently account for only a small portion of USDT circulation, including Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand.
From Freezing to Phased Withdrawal
In July 2024, Tether announced it would stop redemptions and freeze tokens on five chains starting September 1, 2025. However, in a communication on August 29, the company appears to have reversed the freeze and opted instead to halt issuance and redemption.
After receiving feedback from communities associated with those blockchains, Tether revised its approach. Transfers will remain possible, but the company will no longer mint or redeem tokens on these chains, effectively leaving them unsupported.
This move marks the end of an era for Omni Layer, once a primary issuance base for USDT and still holding just under $83 million.
EOS trails with just over $4 million, while the other chains each hold less than $1 million.
By contrast, Ethereum and Tron dominate the stablecoin footprint, with more than $150 billion issued between them.
Refocusing on High-Demand Ecosystems
The decision underscores Tether’s strategy to concentrate on chains with strong liquidity and active developer ecosystems.
Ethereum, Tron, and BNB Chain remain priority networks for the company, while newer platforms like Arbitrum, Base, and Solana are attracting attention—especially from rival USDC.
By reducing focus on legacy blockchains, Tether aims to streamline resources toward ecosystems that offer greater scalability, user demand, and integration with broader digital finance.
Stablecoins Enter a New Policy Era
Tether’s realignment highlights the balance between legacy commitments and future opportunities.
Tokens on retired chains such as Omni and EOS will remain transferable, but Tether’s attention is firmly fixed on larger, more dynamic ecosystems.
At the same time, traditional financial companies like Western Union are exploring stablecoins to modernize remittances and improve currency conversion, pointing to a broader wave of adoption.
Tether’s timing also coincides with growing U.S. policy support for stablecoins. Recent legislation signed by the U.S. president—designed to bolster the dollar’s role in digital markets—provides regulatory backing for dollar-pegged digital assets.
Moreover, the U.S. Treasury projects that the stablecoin sector could grow from about $285.9 billion today to over $2 trillion by 2028. Ripple’s CEO has suggested that growth could accelerate and reach such levels within just a few years.
As stablecoins expand into payments, savings, and global remittances, Tether’s adjustments reflect both market realities and the sector’s rapid preparation for potentially trillion-dollar growth.