- Tether halts USDT on five blockchains due to low demand.
- Focus shifts to Bitcoin RGB protocol for expanded operations.
- Migrating from discontinued platforms could affect liquidity dynamics.
Tether Holdings Ltd. plans to halt USDT issuance and redemption on five blockchains by September 2025, while expanding support for Bitcoin through the RGB protocol, following community feedback.
Focus on scalable networks aims to optimize operational efficiency, impacting liquidity on affected blockchains and driving migration towards Ethereum and Tron, with expansion onto Bitcoin’s Layer-2.
Tether, the largest stablecoin issuer, has announced plans to cease USDT issuance and redemption on five blockchains by September 2025. This decision follows feedback from their community about underutilized platforms. Ethereum and Tron remain the core priority networks.
The blockchains affected include Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. Paolo Ardoino, CEO of Tether, is orchestrating the strategy. Focus will shift towards Bitcoin operations via the RGB protocol, enhancing scalability and demand.
The immediate effects include potential liquidity migrations and strategic adjustments for platforms dependent on USDT transactions. Users on the affected blockchains should anticipate changes in transaction capacity and available platforms for USDT operations.
Financial implications involve cost savings for Tether, as maintaining less active chains results in lower operational expenses. Regulatory clarity is also improved as they focus on demand-driven, scalable networks like Ethereum and Bitcoin.
The affected networks should prepare for diminished liquidity and decreased user activity. Liquidity might shift towards leading blockchains such as Ethereum and Tron. On-chain activity data suggests gradual migration toward these more supported platforms.
Historical precedents indicate that past removal of USDT support led to decreased liquidity and diminished arbitrage opportunities. The focus on Bitcoin RGB protocol may foster new development and technological expansion in stablecoin operations.
Following community feedback, Tether will not freeze USDT smart contracts on these blockchains. Users may continue transfers, but issuance and redemption will halt, in line with our strategy to focus on scalable and active networks. – Paolo Ardoino, CEO, Tether.
