Tether says USDT transfers on five blockchains are still possible, but the new USDT will not be issued or redeemed. Tether has shifted its focus to Ethereum, Tron and other high-demand networks. The Stablecoin market is projected to reach $2T by 2028 amid growing US support.
Tether coordinated previous plans to freeze USDT smart contracts on five blockchains, and instead chose to continue transferring the tokens while halting issuance and redemption.
This change affects the OMNI layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand.
Transition from freezing to fading
In July 2024, Tether announced that redemptions in five chains will be suspended starting September 1, 2025 and that tokens will be frozen. However, in communications on August 29, the company appears to have overturned the freeze and opted to suspend issuance and redemption.
However, following feedback from the community associated with these blockchains, the company revised its approach.
Transfers are still possible, but tethers no longer create or redeem tokens for these chains and are not effectively supported.
The move marks the end of the ERA, especially in the Omni tier, but was once the basis for the issuance of USDT, and currently holds just under $83 million.
EOS is just over $4 million, with the remaining chains under $1 million each.
In contrast, Ethereum and Tron dominate the footsteps of Stablecoin, with over $150 billion issued.
Focus shifts to a high demand ecosystem
This decision highlights Tether’s strategy of integrating around the chain with strong fluidity and developer activity.
Ethereum, Tron and BNB chains remain the company’s prioritization networks, with new platforms like Arbitrum, Base and Solana particularly attracting attention with rival USDC.
By reducing attention to legacy blockchains, Tether aims to streamline resources towards an ecosystem that promises integration with scalability, user demand, and broader digital finance.
Stubcoin enters a new era of policy
Tether’s recalibration highlights the act of balancing legacy commitments and future opportunities.
OMNI tokens, EOS and other deprecated chains remain transferable, but the company’s attention is more and firmly attached to a more dynamic ecosystem.
At the same time, traditional financial players such as Western Union are exploring stable players to modernize remittances and improve currency conversions, pointing to a wider wave of adoption.
Furthermore, the timing of Tether’s movement is consistent with increasing policy support for US Stablecoins.
The recent genius law signed by President Trump provides regulatory support for assets awarded in the dollar as a tool to widen the impact of US currency in digital markets.
Additionally, the US Treasury estimates that the Stablecoin sector could exceed $20 trillion by 2028, up from the current $285.9 billion.
Ripple’s CEO suggests that growth could accelerate even faster, and could reach that mark within just a few years.
As Stablecoins expands into payments, savings and global transfers, Tether’s shift reflects both the market reality and the demands of sectors that rapidly prepare to prepare for trillion dollars of growth.
