TL;DR
- Tether announced it will cease USDT support on Algorand, Bitcoin Cash, EOS, Kusama, and Omni starting September 1 due to low usage and limited activity.
- The company will prioritize Layer 2 networks and emerging blockchains like Lightning Network, which offer better scalability, interoperability, and operational volume.
- Ethereum and Tron now account for nearly all USDT in circulation, while the five affected networks hold only a few million dollars in active tokens.
Tether announced it will end USDT operations on five blockchains it considers outdated and with minimal activity.
Starting September 1, Algorand, Bitcoin Cash, EOS, Kusama, and Omni will no longer be supported. The decision includes halting redemptions and freezing the remaining tokens on those networks. According to the company, this move will allow it to reorganize resources and focus on platforms with greater growth potential, active use, and ongoing development.
Tether Will Focus on Layer 2 Networks and Emerging Blockchains
The company had already stopped minting USDT on Bitcoin Cash, Kusama, and Omni in August 2023, though redemptions remained active. Omni, notably, was the first network to host Tether on Bitcoin in 2014 but lost relevance to faster, more scalable alternatives. The firm explained it will prioritize its presence on Layer 2 networks and emerging blockchains like Lightning Network, which offer better interoperability and lower operating costs.
Data shows that USDT circulation on these blockchains is minimal. Kusama holds less than $250,000 active out of $3.5 million issued. Bitcoin Cash has under $1 million in circulation, and Omni holds $82 million out of the $888 million it once managed. EOS maintains about $5 million, while Algorand has just $841,000 circulating.
Ethereum and Tron Dominate USDT Issuance
Today, Ethereum and Tron hold nearly all USDT issuance, with over $155 billion combined. Tether stated this adjustment is meant to align with the effective usage of its customers and adapt its infrastructure to ecosystems with sustained demand and consistent technological activity.
The announcement comes alongside new stablecoin regulations in the United States and Europe. In Washington, a bill aiming to regulate them is advancing, while the European Union’s MiCA framework is already in effect, forcing several platforms to scale back or remove their USDT exposure.
Tether advised anyone still holding USDT on these five networks to withdraw or migrate their balances before September 1. The company will continue seeking integrations with blockchain solutions that offer scalability and maintain an active user base
