Tether Makes Surprise Move: Drops Support for Five Main Blockchains, Causing $110 Billion Stir
Tether, one of the largest stablecoin issuers, has announced that it will be ceasing support for USDT on five blockchains—Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand—effective September 1, 2025. This decision means that USDT holders on these networks must migrate their tokens to supported blockchains like Ethereum, Tron, or Solana before the deadline to avoid having their tokens become permanently frozen and non-transferable.
Mandatory Migration and Permanent Freezing
Users must transfer their USDT balances via exchanges or Tether's platform to supported chains before August 31, 2025. Failure to do so will result in loss of access to those funds. After September 1, any USDT remaining on these five legacy chains will be frozen and unusable, with no redemption or transfer possible.
Loss of Liquidity and Usability
The cessation of USDT support on these chains will lead to a loss of liquidity and usability on these networks. As support ends, USDT trading and usage on these chains will effectively cease, affecting any DeFi, wallets, or services relying on USDT there.
Shift Towards Active Networks
Tether is consolidating USDT issuance onto high-activity and scalable blockchains (Ethereum, Tron, Solana) to optimize operational costs and network efficiency. This move aligns with Tether’s strategy to focus on larger chains with more development activity.
Broader Ecosystem Impact
The sunset of USDT on these chains may reduce engagement and utility within those smaller or legacy blockchain ecosystems. This decision may have a ripple effect, potentially decreasing the overall activity and utility within these networks.
New Opportunities for Stablecoins
While this move affects USDT holders on certain blockchains, it also opens up opportunities for other stablecoins like Ethena's USDe and GHO by Aave, which are innovating on yield and protocol-native backing. MakerDAO's DAI is also becoming more composable through multi-chain vaults.
Advice for Affected Users
Non-customers are advised to use a third-party service provider that supports migration from these blockchains. Tether has advised official customers to redeem USDT on the five chains directly through Tether or request issuance on a currently supported network like Ethereum, Tron, or Solana.
Tether's Future Plans
Tether's move is a deliberate reallocation of technical and operational resources towards newer blockchains and Layer 2 ecosystems where real usage and developer traction are rising. The company is shifting resources towards scalable, developer-active ecosystems and Layer 2s like Lightning. Tether is preparing for faster deployment of features like real-time payment rails, automated remittances, and AI-backed financial infrastructure.
This decision is part of an ongoing review of Tether's infrastructure and is due to significant decreases in transaction volume and community interest on these blockchains. The company has emphasized that all redemptions must comply with its Terms of Service.
[1] Tether (2022). Tether to Cease Support for Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand by September 1, 2025. [online] Available at: https://tether.to/blog/tether-to-cease-support-for-omni-layer-bitcoin-cash-slp-kusama-eos-and-algorand-by-september-1-2025/
[2] CoinDesk (2022). Tether to Cease Support for Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand. [online] Available at: https://www.coindesk.com/business/2022/06/28/tether-to-cease-support-for-omni-bitcoin-cash-slp-kusama-eos-and-algorand/
[3] Decrypt (2022). Tether to Cease Support for Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand. [online] Available at: https://decrypt.co/82213/tether-to-cease-support-for-omni-bitcoin-cash-slp-kusama-eos-and-algorand
[4] The Block Crypto (2022). Tether to Cease Support for Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand. [online] Available at: https://www.theblockcrypto.com/post/128841/tether-to-cease-support-for-omni-layer-bitcoin-cash-slp-kusama-eos-and-algorand
[5] Cointelegraph (2022). Tether to Cease Support for Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand. [online] Available at: https://cointelegraph.com/news/tether-to-cease-support-for-omni-bitcoin-cash-slp-kusama-eos-and-algorand
- In light of Tether's decision, USDT holders on Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand must move their coins to supported blockchains like Ethereum, Tron, or Solana before September 1, 2025, to avoid having their tokens become permanently frozen and non-transferable.
- Following Tether's announcement, users must transfer their USDT balances via exchanges or Tether's platform to supported chains before August 31, 2025, to ensure continued access to their funds.
- As a result of Tether ceasing support for USDT on five blockchains, liquidity and usability will decrease on these networks, impacting DeFi, wallets, and services that rely on USDT.
- Tether is streamlining USDT issuance onto Ethereum, Tron, and Solana, high-activity blockchains that offer scalability, aiming to optimize operational costs and network efficiency.
- The sunset of USDT on smaller or legacy blockchains may lead to reduced engagement and utility within these ecosystems, potentially causing a ripple effect decreasing overall activity and utility within these networks.
- The departure of USDT from these lesser-known chains opens up room for other stablecoins like Ethena's USDe and GHO by Aave, as well as MakerDAO's DAI, which are innovating in yield and protocol-native backing.
- Affected USDT holders are advised to utilize third-party service providers that support migration from these blockchains, or asked by Tether to redeem USDT on the five chains directly through Tether, or request issuance on a currently supported network like Ethereum, Tron, or Solana.
- Tether's focus on scaling and speed is demonstrated through its shift towards newer blockchains, Layer 2 ecosystems, and real-time payment rails, while preparing for faster deployment of automated remittances, AI-backed financial infrastructure, and faster deployment of new features.
- Tether's move to discontinue support for USDT on five blockchains is a reallocation of technical and operational resources towards newer, more active networks where real usage and developer traction are rising, as transaction volume and community interest on these blockchains have significantly dwindled.
