KEY TAKEAWAYS
- Tether will discontinue USD₮ redemptions and freeze tokens on five legacy blockchains by September 1, 2025.
- This decision is part of Tether’s strategy to focus on high-utility, actively developed blockchains.
- Tether encourages USD₮ holders on affected blockchains to redeem or migrate their holdings promptly.
- The company aims to enhance USD₮ utility by expanding support for Layer 2 networks and emerging blockchains.
Tether, a leading entity in the digital asset ecosystem, has announced its decision to discontinue USD₮ redemptions and freeze remaining tokens on five legacy blockchains. The affected blockchains are Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. This change will take effect on September 1, 2025.
The move is part of Tether’s broader strategy to optimize its infrastructure and align with current community usage trends. The company aims to refocus its resources on high-utility, actively developed blockchains. This decision follows a comprehensive review of blockchain usage data, market demand, and feedback from community stakeholders and infrastructure partners.
Strategic Shift Towards Emerging Technologies
According to Tether, the volume of USD₮ circulating on these legacy networks has significantly declined over the past two years. Paolo Ardoino, CEO of Tether, stated, “As the digital asset ecosystem evolves, Tether remains committed to adapting alongside it.” He emphasized that sunsetting support for these chains allows Tether to concentrate on platforms that offer greater scalability, developer activity, and community engagement.
This strategic pivot reflects Tether’s focus on expanding support for Layer 2 networks, such as the Lightning Network, and other emerging blockchains that provide improved interoperability, speed, and ecosystem growth. By reallocating resources from underutilized blockchains, Tether aims to better serve its global user base.
Guidance for USD₮ Holders
Tether has advised its customers holding USD₮ on Omni, Kusama, SLP, EOS, and Algorand to redeem their holdings promptly. Alternatively, they can request an issuance of USD₮ on a supported blockchain, in accordance with Tether’s Terms of Service. Holders who are not direct customers may seek to migrate their USD₮ holdings to a supported blockchain through available service providers.
Tether continues to explore collaborations and integrations with innovative blockchain ecosystems to enhance the accessibility and utility of USD₮. This includes expanding support for scalable Layer 2 networks and DeFi-native chains where user activity and developer engagement are robust. For more information and ongoing updates, visit the official announcement here.
Why This Matters: Impact, Industry Trends & Expert Insights
Tether has announced it will cease support for USD₮ on five legacy blockchains by September 2025, as part of a strategic shift to focus on more active and scalable platforms.
Recent industry reports indicate that Layer 2 solutions are becoming essential for blockchain scalability, with significant growth in platforms like Ethereum Layer 2s. This aligns with Tether’s decision to reallocate resources towards emerging technologies and scalable networks, enhancing its strategic position in the digital asset ecosystem.
A CoinPaper report highlights Tether’s strategic pivot towards expanding its influence in the blockchain industry through infrastructure investments and enhancing USDT liquidity. This supports Tether’s focus on improving the utility and accessibility of its stablecoin across more dynamic and secure blockchain platforms.
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