- Tether will end USDT support for Omni, SLP, Kusama, EOS, and Algorand by September 1, 2025.
- The move follows a decline in usage and is part of Tether’s broader infrastructure optimization.
- The company will prioritize Layer 2 networks and active blockchains with higher community demand.
Tether has officially initiated the process to phase out USDT support on five older blockchains. It was announced by the company that redemptions and token issuance for Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand will stop by September 1, 2025. Remaining tokens for these chains will become frozen.
This resolution comes after a thorough infrastructure audit, involving the determination of chains with low usage and static growth. The company explained that the five chains had been responsible for its initial growth, yet current data revealed a considerable decline in USDT circulation through them.
The slowing down of activity, as well as the shifting interests of the users, helped foster the view that such networks are no longer aligned with the expansion strategy of the company.
According to CEO Paolo Ardoino, the business seeks to place additional focus on chains that offer real-time scaling, continuous building, and increasing adoption.
Also Read: Tether and Adecoagro Launch 230MW Clean Energy Bitcoin Mining in Brazil
Tether Boosts Support for Lightning and DeFi-Ready Blockchains
With decreased dependence on legacy infrastructure, the company aims to escalate the adoption of Layer 2 infrastructure such as the Lightning Network. Tether sees these as central to increasing the throughput of transactions while preserving decentralization.
This infrastructure change also includes exploration of partnerships with newer blockchains concentrating on fee-effective transactions as well as interoperability.
Experts like Kevin Mehrabi of StableTech have already pointed out that chains with weak developer traction are likely to plateau when it comes to ecosystem expansion and token circulation. This lends credibility to the company’s move away from idle chains.
By reallocating operational and technical resources, the company seeks to enhance the usefulness of USDT in decentralized finance (DeFi), micro-payments, and cross-border transfers. Tether seeks to align support with ecosystems where stablecoins have practical, burgeoning use cases.
User Action Needed Before Deadline
The company has advised all the holders with balances on the impacted chains to redeem or transfer their tokens prior to the 2025 deadline. Official clients can seek reissue of their USDT on the supported chains via current Tether services.
The non-customers have the option to migrate through the third providers, depending upon the providers’ policy.
Inaction after the deadline means users won’t have access to their frozen USDT tokens on these blockchains. Tether reminded again that these changes are a long-term initiative toward optimizing stablecoin efficiency and backing ecosystems that provide tangible utility and growth.
Also Read: Tether Expands Security Infrastructure with Strategic Crystal Intelligence Investment
Disclaimer: This article is based on real-time market data and general technical observations. It does not constitute financial advice. Always conduct your own research before making investment decisions.
