Tether has announced its decision to discontinue USDT on five blockchains, redirecting resources and focusing on more scalable solutions.
Changes in USDT Support
Tether has decided to discontinue issuing USDT on the Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand blockchains. CEO Paolo Ardoino stated that this decision was made after assessing blockchain usage data and consulting with stakeholders.
> "Sunsetting support for these legacy chains allows us to focus on platforms that offer greater scalability, developer activity, and community engagement." – Paolo Ardoino.
Impact on Liquidity and Trading
No new USDT will be issued on the affected blockchains after 2025, with tokens frozen. Tether emphasizes that most of its trading volume already occurs on Tron, Ethereum, Solana, Aptos, and TON, which remain unaffected. This shift may affect on-chain liquidity for the discontinued platforms, but major DeFi and CEX liquidity continues to focus on unaffected blockchains.
Market Expectations and Reaction
While Tether has not disclosed details regarding funding reallocations, market reactions indicate an acceptance of the changes due to low USDT adoption on the affected blockchains. Major disruptions among leading cryptocurrencies are not expected. Tether's strategy allows a focus on networks with stronger developer activity, potentially leading to improved blockchain functionality.
Tether's strategic changes highlight an ongoing trend of optimizing platform reliance for wider ecosystem benefits.
