Tether, the world’s largest stablecoin issuer, is phasing out its USDT stablecoin services on five “legacy” blockchains: Algorand, Bitcoin Cash, EOS, Kusama, and Omni. This move, effective September 1, will see redemptions discontinued and remaining tokens frozen on these chains as the company streamlines operations and aligns with evolving user demand.
Tether CEO Paolo Ardoino stated, “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.”
The decision to discontinue support for Bitcoin Cash, Kusama, and Omni implementations was first announced in August 2023, citing low usage and degraded performance. While minting had already ceased on these chains, redemptions remained active until now.
Notably, Omni served as the initial transport layer for USDT upon its launch in 2014. However, its usage declined with the emergence of competing solutions. Tether has indicated it is “doubling down” on Layer 2 solutions, specifically mentioning Bitcoin’s Lightning Network.
Token Circulation on Affected Chains
According to Tether’s transparency page, the lifetime issuance and current circulation of USDT on the affected chains are as follows:
- Kusama: Approximately $3.5 million issued, less than $250,000 remaining.
- Bitcoin Cash: Around $5 million issued, under $1 million remaining.
- Omni: About $888 million issued, roughly $82 million remaining.
- EOS: Approximately $85 million issued, under $5 million remaining.
- Algorand: Around $841,000 issued and currently circulating.
Tether has advised customers holding USDT on Omni, Kusama, SLP, EOS, and Algorand to redeem their holdings as soon as possible. Alternatively, users can request an issuance of USDT on a supported blockchain, in accordance with Tether’s Terms of Service.Currently, Tron and Ethereum dominate USDT issuance, with approximately $81 billion and $74 billion authorized on-chain, respectively. These two blockchains account for the majority of the $159 billion net USDT tokens in circulation, which are backed by a mix of cash and cash-like assets.
This strategic shift by Tether comes amid increasing regulatory scrutiny for stablecoins both in the U.S. and internationally. U.S. lawmakers are progressing on a “stablecoin bill” that could be signed into law this summer. Furthermore, Tether has been impacted by the European Union’s Market in Crypto Assets (MiCA) legislation, leading several firms operating in the EU to delist or depromote USDT on their platforms.
