Tether, Inc. has announced the discontinuation of support for its USDT tokens on five legacy blockchains beginning September 1. This decision is driven by a desire to focus on busier networks like TRON and Ethereum.
Reasons for Ending Support
Tether will cease the issuance and redemptions of USDT on Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. According to Tether CEO Paolo Ardoino, this measure allows for a concentration on platforms that provide greater scalability and developer activity.
‘As the digital asset ecosystem evolves, Tether remains committed to adapting alongside it,’ Ardoino stated.
Tether's Plans for New Chains
Tether plans to expand its USDT issuance to new L2 chains, particularly those with native DeFi projects. This decision will position Tether to capture demand for stablecoins in the DeFi and DEX segment. The main criteria for selecting new chains will include developer activity and user engagement.
Impact on Users and Tokens
All holders of remaining legacy tokens will need to find ways to swap their assets ahead of the freeze. Tether continues to mint USDT on TRON, which is currently the leading chain in terms of user count. The impact on the overall supply of USDT is expected to be minimal, as the mentioned blockchains exhibit low trading volume and underdeveloped ecosystems.
Tether's decision to halt support for tokens on legacy chains reflects the company's strategic approach to optimizing its infrastructure in line with new trends in blockchain technology.
