Tether Stops USDT Minting on Eos and Algorand, Changes Stablecoin Scene

YEREVAN (CoinChapter.com) — Tether has announced it will stop minting its US dollar-pegged stablecoin, USDT, on the Eos and Algorand blockchains starting June 24. This change is part of Tether’s plan to streamline its operations.

Despite this halt, Tether will continue to redeem USDT on these blockchains for the next 12 months.

“Further changes may be evaluated and announced around that time,”

the company mentioned.

Tether Ensures Smooth Transition Amid Blockchain Changes

Tether’s decision aims to maintain balance in its ecosystem.

“We carefully evaluate the network’s security architecture to ensure the safety, usability, and sustainability of the chosen blockchain,”

Tether noted. The company aims to allocate resources to improve security and efficiency while encouraging innovation. They assured users that the transition would be smooth and with minimal disruption.

“Our top priority remains delivering a seamless user experience, and we are committed to facilitating a hassle-free transition,”

Tether added.

Minimal Impact on USDT Supply from EOS and Algorand Minting Halt

The halt in USDT minting on Eos and Algorand will have a minor impact on the overall USDT supply. As of June 22, Eos-based USDT in circulation was $75.5 million, representing just 0.06% of the total circulating USDT of nearly $113 billion. Algorand-based USDT had an even smaller share, with around $17 million, or about 0.01% of the total USDT.

Tether introduced USDT on the Algorand blockchain in 2020, following its rollout on the Eos blockchain in May 2019. Both blockchains are among 17 that support Tether transactions, including Ethereum, Tron, Solana, and The Open Network (TON).

Tether Shifts Blockchain Focus

In August 2023, Tether stopped minting USDT on Kusama, Bitcoin Cash SLP (Simple Ledger Protocol), and the original USDT blockchain, the Omni Layer Protocol. The first Tether tokens were issued on the Bitcoin blockchain through Omni in October 2014.

While ending support for Eos and Algorand, Tether has integrated new blockchain networks. In April 2024, Tether launched TON-based USDT, minting around $500 million worth of stablecoins based on TON, which accounts for 0.44% of the total circulating supply.

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