In a strategic shift aimed at improving efficiency and future-proofing its infrastructure, Tether is officially ending support for USDT on five older blockchain networks. The company will freeze remaining tokens and halt redemptions on Omni Layer, Algorand, Bitcoin Cash SLP, Kusama, and EOS, with final phase-out set for September 1, 2025.
This move underscores Tether’s evolving blockchain strategy as it turns toward more scalable and actively used platforms to support its dominant stablecoin.
Why Tether Is Pulling the Plug
Tether, the issuer behind the world’s largest stablecoin by market cap, described these networks as “legacy blockchains,” no longer aligned with its forward-looking goals.
“As the digital asset ecosystem evolves, Tether remains committed to adapting alongside it,” said CEO Paolo Ardoino. “Sunsetting support for these legacy chains allows us to focus on platforms that offer greater scalability, developer activity, and community engagement—key components for driving the next wave of stablecoin adoption.”
This isn’t an abrupt decision. In fact, three of the five networks—Omni Layer, Kusama, and Bitcoin Cash SLP—had already seen partial support discontinued in 2023. Tether left the door open for a revival if user demand returned. It didn’t.
Now, the company has completed its review of usage metrics, market demand, and community feedback, confirming that these blockchains no longer meet the firm’s evolving performance and scalability standards.
The Rise and Fall of “Legacy” Chains
Some of these blockchains once played a foundational role in Tether’s history. Omni Layer, in particular, was the original home of USDT when the stablecoin first launched on Bitcoin in 2014. At the time, it was groundbreaking.
However, the landscape has changed dramatically. Omni, EOS, and the others have lost market share to newer platforms offering faster speeds, better tooling, and greater developer engagement. Algorand and Kusama were early contenders in the smart contract race, but both have struggled to maintain traction in a competitive Layer-1 environment.
In this context, Tether’s decision to move on from these chains reflects a broader industry trend: blockchain networks must continuously evolve or risk being left behind.
What Comes Next: A Focus on Layer-2 Innovation
So where is Tether headed now?
Rather than launching its own blockchain—a route it publicly ruled out last year—Tether is channeling its resources into Layer-2 (L2) protocols. The company has already expanded support for the Bitcoin Lightning Network, and it plans to double down on this path.
By prioritizing L2s, Tether aims to boost USDT scalability and reduce transaction costs, offering users more flexibility without compromising speed or security.
This strategy aligns with a broader industry movement toward scaling solutions that enhance performance without overhauling the base layer. Expect to see more USDT integrations on rollups, sidechains, and other L2 innovations in the months ahead.
