Tether’s Strategic Shift: Discontinuing USDT Support on Legacy Blockchains
Renowned for its reliable and expertly curated content, Tether, the operator behind the world’s leading stablecoin, USDT, is steering its business strategy in a new direction. By discontinuing support for USDT on five outdated blockchains, Tether is setting its sights on the burgeoning potential of layer-2 blockchain ecosystems.
Tether to Cease USDT Support on Legacy Blockchains
In a recent announcement dated July 11, Tether unveiled plans to discontinue USDT operations on five blockchains: Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. Operating from the British Virgin Islands, Tether’s decision is grounded in a strategic review of its infrastructure. The move aligns with shifting user preferences and a concerted effort to embrace more scalable and actively developed blockchain networks.
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Through comprehensive analysis of blockchain usage data and market trends, coupled with valuable feedback from stakeholders, Tether has recognized the need to adapt. Paolo Adoino, Tether’s CEO, elaborates, stating, “As the digital asset ecosystem evolves, Tether remains committed to adapting alongside it; 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 Omni Layer holds historical significance as the inaugural protocol for launching USDT back in 2014. However, its usage has considerably declined, with focus shifting to more versatile platforms like Ethereum and Tron. This transition underscores a broader market shift away from underutilized blockchains. Furthermore, Tether’s strategy reflects an increasing commitment to Layer 2 solutions, such as the Lightning Network, which promise enhanced transaction throughput and reduced fees.
All Tether customers are advised to redeem their USDT holdings on the affected blockchains, including Omni Layer and Algorand, before the deadline of September 1. Alternatively, they have the option to transfer their USDT to supported blockchains through available service providers.
USDT Reaches New Market Cap Milestone
In related developments, USDT’s market capitalization has soared to an unprecedented $159.1 billion, following a robust trading week. Since the onset of Q3 2025, Tether’s stablecoin has gained an additional $1.51 billion in market share, solidifying its standing as the largest stablecoin and the third-largest cryptocurrency globally. Meanwhile, Circle’s USDC has maintained its position as the second-largest stablecoin, experiencing an impressive 81.42% surge in adoption over the past month, with its market cap reaching $63.51 billion.
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