Tether has revised its initial plan to freeze USDT tokens on five legacy blockchains—Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand—following significant feedback from the community and developers. Originally, the company intended to halt all transfers by freezing USDT tokens on these networks by September 1, 2025, effectively stopping movement and limiting user activity. However, in response to considerable backlash, Tether abandoned the freeze, opting instead to allow token transfers to continue while ceasing issuance and redemption on these chains. This adjustment reflects an effort to maintain user access to their tokens while reducing official support for these less active networks. The decision also underscores Tether’s emphasis on scalability and ecosystem strength as key factors in its support strategy. Importantly, Tether has permanently ended issuance and redemption on these blockchains, classifying them as unsupported networks. This shift is expected to affect market activity, as volume patterns will likely change due to decreased official engagement.
The five blockchains have been reclassified as unsupported by Tether, a status that permits peer-to-peer transfers but excludes official backing for creating or redeeming USDT. This means that while users can still send USDT between wallets on these chains, they cannot convert tokens to fiat currency or swap them through Tether’s infrastructure. Consequently, the responsibility for managing tokens on these legacy chains shifts away from Tether, imposing limitations on their functionality and increasing risks associated with unsupported usage. Users should be cautious, as the lack of official support may affect liquidity and security.
In terms of circulation, Omni Layer holds the largest USDT amount among the affected chains, approximately $82.9 million, followed by EOS at about $4.2 million, with Bitcoin Cash SLP, Algorand, and Kusama collectively holding less than $3 million. These figures are minimal compared to Ethereum and Tron, which dominate the USDT market with over 83 billion and 79 billion tokens respectively. This disparity underlines Tether’s strategic choice to focus resources on blockchains with higher developer engagement and user demand, such as Ethereum, Tron, and BNB Chain.
Issuance and redemption activities will no longer occur on the legacy blockchains, restricting USDT’s utility to wallet transfers only. This move aligns with Tether’s broader strategy to optimize support for scalable and active ecosystems, while deprioritizing older networks with smaller user bases and less vibrant developer communities. Although this approach streamlines operations, users on these legacy chains may face increased challenges in liquidity and token management going forward.
