Tether To Discontinue USDT Support On Five Blockchains

Largest stablecoin issuer Tether announced that it will halt USDT redemptions and freeze tokens on five blockchains. These are Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. This move, effective September 1, 2025, will mark a significant shift in its operations. The company stated that this would enhance security and efficiency in the broader digital asset ecosystem.

Tether To Sunset USDT On Five Blockchains

Tether previously announced in August 2023 that it would discontinue support for Bitcoin Cash, Kusama, and Omni due to low usage and poor performance. Although minting was halted, redemptions remained active until now, when support will fully cease across these and two additional blockchains.

Tether’s transparency page shows low USDT circulation on these blockchains: $250,000 on Kusama (out of $3.5 million issued), $1 million on Bitcoin Cash (out of $5 million), and $82 million on Omni (out of $888 million). This highlights the disparity between issuance and current circulation amounts.

Tether urged customers holding USDT on these five blockchains to redeem their tokens as soon as possible or request a transfer to a supported blockchain. According to their Terms of Service, this is to avoid potential issues as support for these blockchains will be discontinued.

Tether’s next step involves  “doubling down” on layer-2 protocols for USDT expansion, building on its recent support for the Lightning Network, rather than developing its blockchain.

Noting this development, Tether’s CEO, Paolo Ardoino, said:

“As 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 — all key components for driving the next wave of stablecoin adoption.”

Tether’s Regulatory Roadblock

The company’s latest decision came when it failed to expand its business to the European Union.

In an earlier report, Tether has opted not to register under the EU’s Markets in Crypto-Assets (MiCA) framework. This was due to transparency issues and ongoing regulatory scrutiny, particularly surrounding its audit practices. As a result, the company is prohibited from operating within the EU under the new regulatory regime. This led several major exchanges to delist USDT trading pairs for European users.

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