Tether has reversed its previous plan to freeze USDT tokens on five blockchain networks, allowing continued limited token transfers while halting issuance and redemption on these chains.
Previously intending to freeze USDT contracts on Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand, Tether adjusted its strategy following community feedback. The tokens will remain transferable but no longer officially issued or redeemed on these chains. This change delays the planned termination of support originally scheduled for September 1.
The company acknowledged user impact especially on these blockchains but emphasized its focus on supporting ecosystems with active development, scalability, and user demand. Tron and Ethereum stand out as the leading blockchains with the highest USDT supply and adoption.
According to DeFiLlama data, Tron and Ethereum host $80.9 billion and $72.4 billion worth of USDT respectively, with BNB Chain following at $6.78 billion. Other growing platforms, including Solana and Ethereum Layer-2 networks like Arbitrum and Base, exhibit significant stablecoin activity, mostly involving USDC rather than USDT.
Among the affected networks, Omni Layer holds the largest USDT circulation at approximately $82.9 million. The other chains, EOS, Bitcoin Cash SLP, Algorand, and Kusama, have lower amounts under $4.2 million combined.
Tether’s gradual withdrawal from these blockchains began two years ago. It ceased USDT issuance on Omni Layer, Kusama, and Bitcoin Cash SLP in August 2023, and halted minting on EOS and Algorand in June 2024.
The overall stablecoin market currently has a capitalization of $285.9 billion, led by USDT and USDC with $167.4 billion and $71.5 billion respectively, according to CoinGecko.
Stablecoin Market Growth Outlook
Recent regulatory developments, such as the signing of the GENIUS Act by US President Donald Trump, are expected to bolster US dollar-backed stablecoins, reinforcing the dollar’s position as the global reserve currency.
The US Treasury projects stablecoins could reach a $2 trillion market capitalization by 2028, highlighting the rapid expansion and importance of stablecoins in the cryptocurrency ecosystem.
Tether’s decision to revise its USDT freezing plans aligns with its intent to maintain support for blockchains demonstrating significant community engagement while focusing resources on those with robust growth potential.
