KEY TAKEAWAYS
- Tether updates its transition plan for five legacy blockchains, allowing token transfers but ceasing direct issuance and redemption.
- The decision reflects Tether’s strategy to focus on ecosystems with strong developer activity and user demand.
- Tether emphasizes transparency and community engagement during the transition process.
On August 29, 2025, Tether, a leading entity in the digital asset ecosystem, announced an update to its transition plan concerning five legacy blockchains: Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. This announcement follows the company’s initial plan, revealed in July 2024, to wind down support by ceasing redemptions and freezing USD₮ tokens on these blockchains starting September 1, 2025.
In response to feedback from the communities associated with these discontinued blockchains, Tether has revised its approach. The company will no longer freeze the smart contracts on these networks. Users will still be able to transfer tokens between wallets, although Tether will discontinue direct issuance and redemption on these blockchains. Consequently, these tokens will not receive the same official support as other Tether tokens.
This decision aligns with Tether’s broader strategy, which focuses on expanding support for ecosystems demonstrating strong developer activity, scalability, and user demand. Tether remains committed to ensuring a smooth transition and will continue to engage with the community to maintain transparency and clarity throughout this process. For more updates, visit Tether’s official announcement.
Why This Matters: Impact, Industry Trends & Expert Insights
Tether has announced an update to its transition plan for five legacy blockchains, opting not to freeze smart contracts but ceasing direct issuance and redemption on these networks. This decision reflects Tether’s strategy to focus on scalable and active blockchain ecosystems.
A report by TrySpeed highlights the current trend of stablecoin support shifting towards multi-network deployments, including integrations with the Bitcoin Lightning Network for scalable payments. This aligns with Tether’s strategic focus on optimizing its operations by retiring low-usage chains in favor of more efficient networks.
As per insights from AInvest, Tether’s integration of USDT on Bitcoin via RGB protocol is seen as a move to enhance scalability and privacy. This supports the impact of Tether’s transition plan by consolidating support on more robust platforms, which may boost Bitcoin’s utility and Tether’s overall efficiency.
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