Tether has revised its previously announced plan to hard-freeze USDT on several older, low-usage networks and will instead classify those tokens as “unsupported” while allowing them to remain technically transferable on-chain. The change affects USDT issued on so‑called legacy blockchains, including Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand, which Tether had earlier scheduled to fully freeze and exclude from redemptions starting September 1, 2025. After community criticism and concerns about users being stranded with immovable tokens, Tether abandoned the freeze plan via an August 29 update and adopted the new unsupported status. In practical terms, “unsupported” means Tether will no longer issue new USDT, redeem USDT for fiat, or otherwise provide operational support on these chains, but existing tokens will continue to move between wallets at the protocol level. Tether’s own protocol page now states it is no longer obligated to redeem Tether tokens on Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand, keeping related details only for historical reference. The company frames the shift as part of a broader resource reallocation toward higher‑volume, more scalable ecosystems and Layer‑2 solutions, while the unsupported designation is intended to reduce reputational risk relative to a permanent freeze and avoid directly locking user funds. For holders, the key implication is counterparty: USDT on these legacy networks will still exist and be transferable, but with no redemption commitment or active support from Tether, users largely depend on third‑party exchanges or bridges—if any remain—to move value into supported networks. This policy evolution highlights both the centralization trade‑offs of major stablecoins and the lifecycle risk of assets issued on experimental or low‑adoption chains. Earlier, Tether had started phasing out mints on Omni, SLP, and Kusama in 2023 and on EOS and Algorand in 2024, signaling that liquidity and developer activity were concentrating elsewhere. The reversal from an outright freeze to unsupported status underscores how user and developer feedback—particularly from smaller ecosystems—can influence issuer behavior, but it also draws a line under Tether’s strategic focus: the firm is prioritizing chains such as Ethereum, Tron, Solana, and certain Layer‑2s, while legacy networks lose issuer guarantees and institutional support.

AI-generated background, compiled from web sources — not editorial content.

More coverage

Explore the topic

Loading related coverage…

Comments

Loading comments…