Tether Adjustments in Stablecoin Ecosystem
Stablecoin titan Tether is in the process of revamping its premier U.S. dollar-pegged stablecoin, USDT, by ceasing the creation of new USDT on several additional blockchains.
Tether has disclosed its decision to halt the minting of USDT on the EOS and Algorand blockchains commencing June 24, as officially stated on the company's blog on Monday.
After this cessation, Tether will uphold the redemption of USDT on EOS and Algorand in the customary manner for the ensuing 12 months. The announcement hints at potential forthcoming adjustments to be assessed and communicated at that time.
According to Tether, this move to discontinue minting EOS and Algorand-based USDT is in sync with the enterprise's initiative to retain equilibrium within the Tether ecosystem. The company meticulously evaluates the security framework of networks to ensure the safety, usability, and sustainability of the chosen blockchain while emphasizing the allocation of resources to enhance security, efficiency, and foster innovation.
The enterprise pledges a meticulous transition with minimal disruptions, emphasizing that an uninterrupted user experience remains paramount, and a seamless transition devoid of hassles is assured.
Minimal Share of USDT Supply
EOS and Algorand represent a trifling fraction of the total USDT supply, constituting less than 0.1% in aggregate.
Among the 17 blockchains enabling Tether transactions, including Ethereum, Tron, Solana, The Open Network (TON), and others, EOS and Algorand contribute insignificantly to the overall USDT circulation.
As of June 22, EOS-based Tether in circulation amounted to $75.5 million, approximating merely 0.06% of the nearly $113 billion overall USDT market, as disclosed in Tether's transparency data.
Similarly, Algorand-based USDT circulation is even more marginal, with approximately $17 million worth of USDT in circulation, constituting merely 0.01% of the total USDT supply.
Previously, Tether had introduced USDT on the Algorand blockchain in 2020, following the launch of USDT on the EOS blockchain in May 2019.
Strategic Shifts and New Integrations
Not confined to EOS and Algorand, Tether has opted to forego other blockchains for new USDT issuance.
The initial issuance of Tether USDT took place on the Bitcoin blockchain, marking a significant milestone. In August 2023, Tether ceased USDT production on three blockchains, including Kusama, Bitcoin Cash SLP (Simple Ledger Protocol), and the original USDT blockchain, the Omni Layer Protocol.
Tether's inaugural tokens were introduced on the Bitcoin blockchain through Omni back in October 2014.
While discontinuing EOS and Algorand support, Tether is actively integrating fresh blockchain networks like TON. Post the initiation of TON-based USDT in April 2024, Tether has minted approximately $500 million worth of stablecoins based on TON, constituting 0.44% of the total circulating supply, according to Tether's transparency disclosures.
