Tether Streamlines USDT: Focus Shifts to Layer 2 Solutions
USDT to be discontinued on Omni, BCH, Kusama, EOS, and Algorand networks by September 2025 as Tether prioritizes scalability and developer activity on alternative chains.
Tether Consolidates USDT Support: Sunset Dates Announced for Several Blockchains
Tether, the issuer of USDT, the world's largest stablecoin, has revealed plans to discontinue support for USDT on five blockchain networks: Omni Layer, Bitcoin Cash's Simple Ledger Protocol, Kusama, EOS, and Algorand. This transition is slated to occur on September 1, 2025, marking the end of USDT minting and redemption on these chains.
Why the Change?
Tether cites a significant decline in the usage of USDT on these platforms over the past two years. While these networks played a role in Tether's early growth, the company is now prioritizing blockchains and Layer 2 solutions that offer greater scalability, enhanced developer tooling, and stronger community engagement. This move allows Tether to focus its resources on platforms better suited for the future of stablecoin adoption.
As stated by Tether CEO Paolo Ardoino, “Sunsetting support for these legacy chains allows us to focus on platforms that offer greater scalability, developer activity, and community engagement — all key components for driving the next wave of stablecoin adoption.”
What's Next for USDT Holders?
Tether is urging users holding USDT on the affected networks to take action promptly. Holders are advised to either redeem their USDT for fiat or migrate their tokens to a supported blockchain. This migration can be facilitated through blockchain bridges or cryptocurrency exchanges.
The Future is Layer 2
Tether's strategic shift underscores the growing importance of Layer 2 networks, such as the Lightning Network, in scaling cryptocurrency transactions. The company is also exploring newer blockchains that promise faster settlement times and more robust developer environments.
Key Takeaways:
- USDT support on Omni, Bitcoin Cash (SLP), Kusama, EOS, and Algorand will end on September 1, 2025.
- Tether is concentrating on Layer 2 solutions and blockchains offering greater scalability.
- USDT holders on affected networks should redeem or migrate their tokens.
- Tron and Ethereum currently host over 95% of the total USDT supply.
Investment Considerations
As always, investors should consider their risk tolerance and investment timeline before making allocation decisions. Bitcoin remains a volatile asset despite increasing institutional adoption.
This article is for informational purposes only and should not be considered investment advice. Always consult with a qualified financial advisor.
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