Tether just flipped the script on its plan to freeze USDT on five blockchains. Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand was about say a goodbye to the stablecoin.
They were gearing up to pull the plug, turning off smart contracts dead cold. But after hearing the street buzz and community whispers, Tether decided, hey, forget freezing.
Let the tokens keep moving, transfer as you please, but no new ones, no redemptions.
Listening to the community
Users on these blockchains can still slide USDT around like a hot potato, but the printing press? It’s shut down for new USDT on those chains.
That’s a no-go for issuance and redemption, making these tokens pretty much unofficial in Tether’s eyes.
The original shutdown plan was queued for September 1, but Tether’s backed off, saying, we’re listening to you, community. The smart play.
Cutting back
Why this change? Tether’s brain trust wants to focus on blockchains with big leagues action, those with active developers, scalability, and users who actually use the tokens.
Tron and Ethereum stand tall here, with $80 and $72 billion of USDT circulating. But smaller players like Omni, with $82.9 million USDT, and EOS at $4.2 million, just don’t cut the same mustard anymore.
Tether’s been cutting back over the past two years, starting in 2023 by halting new USDT issuance on Omni, Kusama, and Bitcoin Cash SLP, then stopping minting on EOS and Algorand in mid-2024.
Now this refined approach keeps things moving but cleans house on support where it’s aging out.
Stablecoin market
Stablecoins are still kingpins, with the total market cap around $286 billion, led by USDT and USDC rocking $167 billion and $71 billion, respectively.
The market’s set to get bigger, some experts say way bigger. The recent GENIUS Act signed by Trump?
Based on the industry insights, it’ll pump the US dollar’s muscle by championing stablecoins pegged to it. The U.S. Treasury is even eyeing this market to hit $2 trillion by 2028.
So no, Tether’s not abandoning these chains cold turkey. Instead, it’s playing it smart, cutting back where it counts, while keeping the wheels rolling for users in legacy ecosystems.
It’s a nod to loyalty while doubling down on growth. As I told you, the smart play.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
