Tether Changes Strategy In 2025—5 Blockchains To Be Phased Out

Tether’s latest move aims to streamline its stablecoin operations. The company plans to end USDT redemptions and token issuance on five older blockchains by September 1, 2025. Any tokens left on Omni Layer, Bitcoin Cash SLP, Kusama, EOS and Algorand will become frozen after that date.

Based on reports from Tether, these five networks once helped drive its early growth. But current data shows a big drop in USDT activity there. Usage has been mostly flat for months. And with few new transactions, keeping those chains alive no longer makes sense.

Tether to Wind Down USD₮ Support for Five Legacy Blockchains as Part of Strategic Infrastructure Review Learn more: https://t.co/MxVGdUnEhA

— Tether (@Tether_to) July 11, 2025

The decision follows a careful infrastructure audit. Teams looked at chains with low usage and slow growth. They found that less than 0.1% of Tether’s total supply moves on those networks. Every dollar spent maintaining them now offers little benefit.

According to CEO Paolo Ardoino, Tether will put more energy into chains that can grow quickly. He pointed to real‑time scaling solutions and rising adoption as key factors.

The company plans to boost support for Layer 2 systems such as the Lightning Network. It also wants to explore partnerships with newer blockchains that offer low fees and better interoperability.

Experts agree with Tether’s approach. Kevin Mehrabi of StableTech said networks with weak developer traction tend to stall. And once growth stops, token circulation follows.

By focusing on blockchains with active builders, Tether hopes USDT will see more real use in DeFi, micro‑payments and cross‑border transfers.

Holders of USDT on the affected chains must act before the September 1, 2025 cutoff. Official Tether services will let existing clients reissue their tokens on supported networks.

Other users can rely on third‑party bridges or custodians, depending on each provider’s policy. If nobody moves their coins in time, those balances will be frozen—completely inaccessible.

By reallocating technical and operational resources, Tether aims to improve transaction speeds and cut costs. The company’s long‑term plan is to back ecosystems that show real growth and practical use cases. For users, the key takeaway is clear: move your USDT off those legacy rails now, or risk losing access later.

Featured image from Vecteezy, chart from TradingView