According to a recent statement by Tether, support for USDT on five blockchains will cease by September 2025. This decision reflects resource optimization and a focus on more active networks.
Overview
Tether, led by CEO Paolo Ardoino, announced it will discontinue USDT support on the Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand blockchains by September 2025. This decision aims to redirect resources toward more scalable networks with active developer communities. The official statement cites low activity and demand on these legacy chains as reasons for their depreciation. Ardoino emphasized that shifting focus helps utilize resources efficiently, while major USDT blockchains like Ethereum and Tron remain unaffected.
Strategic Implications
Tether's announcement implies a deliberate move toward optimizing its stablecoin operations on platforms with significant adoption. This decision indicates a concentration on enhancing network scalability and developer contributions. Tether's review highlighted a decline in USDT activity on deprecated blockchains, suggesting a preference for more vibrant platforms. This strategic choice reflects evolving industry priorities emphasizing community engagement and increased scalability. Major exchanges like Binance are already monitoring the impact on USDT liquidity distribution.
What This Means for Users?
The decision to discontinue support for specific blockchains raises questions for users. Nonetheless, it is anticipated that there will not be any significant impact for Ethereum and Tron users. It's important to note that while some governance tokens on affected chains may experience sentiment shifts, overall market stability is expected to remain intact. Ardoino highlights that efficiently scaling resources will benefit both Tether's operations and the wider cryptocurrency ecosystem.
In conclusion, Tether continues to adapt to changing market conditions by focusing on more active and scalable platforms, which could positively influence the long-term stability of USDT.
