Tether Scales Back on 5 Blockchains but Expands Bitcoin Plans

7h ago•

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Quick Highlights

Tether halts issuance/redemption on 5 blockchains by Sept 2025
Smart contracts stay active, allowing wallet-to-wallet transfers
Company shifts focus to scalable networks and Bitcoin-native solutions

Tether Updates Transition Plan for Legacy Blockchains

On August 29, 2025, Tether — the world’s largest stablecoin issuer announced an update to its transition plan affecting five legacy blockchains: Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand.

From Freeze to Flexibility

In July 2024, Tether said it would stop buying back and freeze USDT on these networks starting September 1, 2025. Following feedback from user communities, the company adjusted its approach: smart contracts will not be frozen.

This means users will still be able to transfer USDT between wallets on these blockchains. However, new issuance and redemption of tokens will stop, effectively ending official company support for them.

Strategic Refocus on High-Activity Ecosystems

Tether explained the decision as part of its broader strategy to concentrate on ecosystems with strong developer activity, scalability, and user demand.

The company emphasized:

“Tether remains committed to a smooth transition and will continue to engage with the community to provide transparency and clarity throughout this process.”

Expansion Through Bitcoin-Based Protocols

Just a day earlier, Tether announced the launch of USDT on the RGB protocol, a new layer-two solution for issuing digital assets on Bitcoin. This will allow users to hold the stablecoin natively alongside BTC in compatible wallets, expanding utility and adoption.

Tether CEO Paolo Ardoino noted: