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Tether is discontinuing USDT redemptions and freezing any remaining tokens on five blockchains. Dubbing these âlegacy blockchains,â the firm is completely removing USDT from these ecosystems.
Specifically, itâs winding down Omni Layer, Algorand, Bitcoin Cash SLP, Kusama, and EOS. Lingering support will remain until September 1, so users will have ample time to move their stablecoins to different networks.
Tether, the worldâs largest stablecoin issuer, has changed a lot over the last few years. In late 2023, it partially discontinued support for three of these five blockchains: Kusama, Bitcoin Cash SLP, and Omni Layer.
Although the firm claimed it would reintroduce support if user activity increased, this did not happen, and Tetherâs finally pulling the plug.
âAs the digital asset ecosystem evolves, Tether remains committed to adapting alongside it. Sunsetting support for these legacy chains allows us to focus on platforms that offer greater scalability, developer activity, and community engagement â all key components for driving the next wave of stablecoin adoption,â claimed CEO Paolo Ardoino.
In fairness, Tether is justified in referring to these blockchains as legacy protocols. Omni Layer, for example, was a prominent component of the crypto ecosystem in the 2010s, but itâs been thoroughly overshadowed. Even though these protocols were key stepping stones a few years ago, their time has come to an end.
Tether reviewed usage data, market demand, and direct community feedback to reach this decision.
So, now that itâs expanding with fewer resources, what is Tetherâs next step? Last August, Ardoino claimed that Tether isnât pursuing its own blockchain. Nonetheless, the company has committed to several blockchain infrastructure and outreach programs in the intervening months.
Instead, Tether will refocus its blockchain efforts in a new direction. Five months ago, the firm added increased support for the Lightning Network, and it plans to do the same again.
Moving forward, the company will prioritize L2 protocols for USDT expansion.
Ultimately, this restructuring will give Tether the best chance of meeting its usersâ needs and optimizing its blockchain support infrastructure. Hopefully, the company will continue elevating new protocols as the entire ecosystem develops.
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