Tether has revised its earlier decision to freeze USDT smart contracts on five blockchains. Users can now continue to transfer tokens, although the issuance and redemption of new USDT will cease. This shift comes as the stablecoin market is projected to reach $2 trillion by 2028 amid increasing support in the United States.
From Freezing to Gradual Phase-Out
In July 2024, Tether announced its intention to stop redemptions and freeze tokens on the five specified chains starting September 1, 2025. However, in a communication on August 29, the company appeared to reverse this freeze, opting instead for a halt in issuance and redemptions.
This recent change impacts Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand—networks that collectively account for only a small fraction of USDT’s circulation.
Although transfers will remain possible, Tether will no longer mint or redeem tokens on these chains, effectively leaving them unsupported. This decision signifies a pivotal moment, particularly for Omni Layer, which was once the primary platform for USDT issuance, now holding less than $83 million.
EOS currently lags with just over $4 million, while the other chains each account for less than $1 million. In contrast, Ethereum and Tron dominate the stablecoin landscape, boasting over $150 billion issued between them.
Focusing on High-Demand Ecosystems
This strategic pivot highlights Tether’s focus on consolidating its resources around chains that exhibit high liquidity and developer activity. Ethereum, Tron, and BNB Chain remain the company’s top priorities, while emerging platforms like Arbitrum, Base, and Solana are gaining traction, particularly with the competing USDC stablecoin.
By reducing its attention to legacy blockchains, Tether aims to streamline its operations toward ecosystems that promise scalability, user demand, and broader integration with digital finance.
Stablecoins Enter a New Political Era
Tether’s recalibration underscores the balance between legacy commitments and future opportunities. Even though tokens on Omni, EOS, and other abandoned chains remain transferable, the company is now firmly focused on broader, more dynamic ecosystems.
Simultaneously, traditional financial entities like Western Union are exploring stablecoins to modernize remittances and improve currency conversion, hinting at a wave of wider adoption.
The timing of Tether’s decision aligns with growing political backing for stablecoins in the U.S. The recently signed GENIUS Act by President Trump offers regulatory support for dollar-indexed assets as tools to expand the influence of the U.S. currency in digital markets.
Furthermore, the U.S. Treasury anticipates that the stablecoin sector could surpass $2 trillion by 2028, a significant jump from the current $285.9 billion. The CEO of Ripple has suggested that growth could accelerate even more rapidly, potentially reaching that figure in just a few years.
As stablecoins expand into payments, savings, and global transfers, Tether’s shift reflects both market realities and the demands of an industry poised for multi-billion-dollar growth.
John is a seasoned journalist at The Bothside News, specializing in balanced reporting across news, sports, business, and lifestyle. He believes in presenting multiple perspectives to help readers form informed opinions. His work embodies the publication’s philosophy that truth emerges from examining all sides of every story.
