Tether, the leading stablecoin issuer, has refined its approach to USDT support on several legacy blockchains. Initially planning to freeze smart contracts, the company has now opted for a less drastic measure, allowing tokens to remain transferable while ceasing new issuance and redemption services. This strategic adjustment reflects community feedback and Tether’s long-term vision for ecosystem focus.
Revised Support for Discontinued Blockchains
Responding to feedback from their respective communities, Tether has confirmed it will not freeze USDT smart contracts on Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. This adjustment means that existing USDT tokens on these networks will continue to be transferable among users. However, Tether will no longer officially support these chains for direct issuance or redemption of USDT, effectively marking them as discontinued for official operations. This move finalizes a gradual phase-out that has been underway for over two years, with issuance already halted on some of these networks prior to this announcement.
Strategic Focus and Market Impact
Tether's decision aligns with its broader strategy to concentrate resources on blockchain ecosystems demonstrating robust developer activity, scalability, and high user demand. Networks like Tron and Ethereum, which host the vast majority of USDT in circulation, exemplify this focus. While tokens on the affected chains will persist, their official support cessation means they will no longer function as fully integrated Tether assets. Omni Layer is expected to experience the most significant impact from this change, given its comparatively larger volume of circulating USDT among the affected networks. This strategic pivot ensures Tether can allocate its efforts more effectively towards the most vibrant and adopted crypto environments.
