Tether Freezes USDT on Five Blockchains: What You Need to Know
Tether, the largest stablecoin issuer in the world, has announced it will officially discontinue support for USDT tokens on five legacy blockchains. Effective September 1, users will no longer be able to redeem or transfer USDT on Omni Layer, Bitcoin Cash SLP, EOS, Algorand, and Kusama, as these tokens will be permanently frozen. This strategic move comes as Tether doubles down on its most active networks TRON and Ethereum, while also setting sights on newer Layer-2 (L2) blockchains.
Tether has positioned this decision as part of its ongoing effort to adapt to market trends, optimize infrastructure, and increase efficiency for developers and users alike. In the words of Paolo Ardoino, CEO of Tether:
“Sunsetting support for these legacy chains allows us to focus on platforms that offer greater scalability, developer activity, and community engagement all key components for driving the next wave of stablecoin adoption.”
Which Blockchains Are Losing USDT Support?
The discontinuation will affect the following five blockchains:
- Omni Layer (Bitcoin-based)
- Bitcoin Cash SLP
- Kusama
- EOS
- Algorand
Tether will freeze all remaining USDT tokens on these networks beginning September 1, 2025, effectively rendering them useless for any transaction purposes. Users who still hold USDT on these chains are advised to swap or migrate their tokens to supported networks before the freeze date.
Each of the discontinued networks currently holds a relatively small share of USDT supply. For example:
- EOS holds 4.3 million USDT
- Omni Layer retains about 87 million
- Algorand hosts 841,000
- Kusama has only 239,000
- Bitcoin Cash SLP contains less than 1 million
The total supply affected is minimal compared to Tether’s broader circulating supply, which now exceeds $160 billion.
Why Is Tether Ending Support for These Chains?
Several factors influenced Tether’s decision:
Shift Toward Scalable and Modern Infrastructure: Newer blockchains and L2 networks offer better scalability, cheaper transaction costs, and higher developer engagement all crucial for Tether’s long-term strategy.
Low Adoption and Activity: The affected chains see minimal user activity and have largely failed to build strong DeFi ecosystems. Many projects built on these chains belong to an earlier generation of blockchain startups that failed to scale or maintain significant user engagement.
Lack of Exchange Support: A key challenge was the reluctance of crypto exchanges to support multiple wallets for every chain. As a result, liquidity and usability of USDT on these networks remained limited.
Unused Authorized Supply: Even though these blockchains had a high authorized supply, much of it was never minted. Tether believes it is more efficient to reallocate focus to platforms where there’s clear user and developer demand.
What’s Next? Tether Targets Ethereum, TRON, and L2 Chains
With legacy chains being phased out, Tether is redirecting its resources toward expanding USDT on Ethereum, TRON, and various Layer-2 solutions. These include chains like Arbitrum, Base, and potentially others with active DeFi ecosystems.
Tether has already minted 22 billion USDT on TRON in 2025 alone, underscoring the growing demand and utility of USDT on high-speed, low-cost blockchains. TRON continues to outpace Ethereum in terms of daily USDT users and transaction volumes.
At the same time, Layer-2 chains like Arbitrum and Base are becoming increasingly important. Arbitrum, in particular, has seen an influx of stablecoin activity, driven largely by USDC. Tether is clearly looking to compete more aggressively with Circle by tapping into these networks.
“We’re targeting networks where developer activity and user interaction are surging. USDT plays a critical role in DeFi liquidity, and we want to be where that innovation is happening,” a spokesperson from Tether said.
Migration Options for Affected Users
If you currently hold USDT on any of the discontinued chains, it’s essential to take action before September 1. While Tether has not outlined a universal migration tool, it suggests the following steps:
- Check your wallet provider: Some wallets may offer native tools to bridge USDT to Ethereum, TRON, or another supported chain.
- Use exchange services: Major exchanges may support USDT swaps between networks for example, converting EOS-based USDT to TRON or ERC-20 versions.
- Request reissuance: In some cases, Tether may allow reissuance of your USDT on a different chain if you contact their customer support.
Failure to migrate before the deadline will result in your tokens being frozen, with no further redemptions or transfers permitted.
Stablecoin Market Remains on Growth Trajectory
Despite the discontinuation on five chains, Tether’s overall market performance remains strong:
- Total stablecoin supply has surpassed $250 billion
- USDT itself has grown over 2.42% in the past month
- USDC also saw a healthy 2.01% increase
This continued growth highlights the ongoing demand for stablecoins, especially in DeFi protocols, trading platforms, and cross-border transactions.
Tether remains a dominant force in this space, with further expansion expected across L2 ecosystems and emerging markets. By reducing technical debt and focusing on high-utility blockchains, the company is positioning USDT for long-term relevance in the evolving digital economy.
A Strategic Shift for a Growing Stablecoin Titan
Tether’s move to sunset legacy blockchain support signals a major turning point in stablecoin strategy. As the company looks to consolidate and expand across chains with real-world utility, it’s also sending a clear message: adapt or be left behind.
With TRON leading in user adoption and Ethereum maintaining its smart contract dominance, USDT continues to serve as a foundational asset for the global crypto economy. Its transition to newer, scalable chains will likely drive even greater adoption across decentralized finance, cross-chain bridges, and everyday crypto transactions.
For users and developers, now is the time to evaluate chain support, ensure your USDT holdings are secure, and align with platforms that represent the next phase of blockchain growth.
