- Tether will no longer freeze USDT smart contracts on five blockchains after receiving user feedback.
- Users can still transfer USDT on these chains but cannot redeem or issue new tokens moving forward.
- Tether will now focus support on chains like Tron and Ethereum with high activity and strong user demand.
Tether has reversed its decision to freeze USDT smart contracts on five blockchains. The stablecoin issuer confirmed users can still transfer tokens on these networks. However, Tether will no longer support issuance or redemption on them. These blockchains are Omni Layer, EOS, Kusama, Algorand and Bitcoin Cash SLP.
The update followed feedback from the affected communities. Tether initially planned to freeze the contracts by September 1. Instead, the tokens will remain live but lose official support status. This means users can transfer tokens, but they cannot redeem or mint new ones on these chains.
Community Feedback Drives Policy Shift
The announcement of Tether has shown a major shift in their blockchain strategy. The strategy is in line with the interest of the company to target ecosystems that have high growth potential. The revised plan does not imply a complete freeze but redirects Tether to more dynamic platforms.
Only a few blockchains have gained widespread adoption. Tron and Ethereum continue to dominate Tether’s support. Tron hosts $80.9 billion of USDT, while Ethereum holds $72.4 billion. BNB Chain follows with $6.78 billion in circulation.
Tether began reducing support for the five blockchains nearly two years ago. In 2023, it ended USDT issuance on Omni Layer, Kusama, and Bitcoin Cash SLP. It stopped minting on EOS and Algorand in June 2024.
Circulating USDT Varies by Chain
Omni Layer will see the biggest impact, with $82.9 million USDT still in circulation. EOS follows with $4.2 million. The remaining chains, Bitcoin Cash SLP, Algorand, and Kusama have less than $1 million each.
Tether clarified these tokens will remain transferable but lose their official status. This means they may still operate but without the same support or updates.
This move signals Tether’s continued prioritization of networks with high user engagement and scalability. The company remains focused on platforms with long-term development activity and utility.
Stablecoin Market Shows Strong Growth
The total stablecoin market now stands at $285.9 billion, according to CoinGecko. USDT leads with $167.4 billion, followed by USDC with $71.5 billion. Other ecosystems, such as Solana, Base, and Arbitrum, show growing stablecoin activity, although many use USDC instead of USDT.
Tether’s decision also aligns with wider regulatory developments. In July, the United States passed the GENIUS Act. The law aims to strengthen the US dollar by promoting dollar-backed stablecoins.
The Treasury projects the stablecoin market will reach $2 trillion by 2028. Tether’s recent move reflects an ongoing shift in focus toward more active blockchain environments.
