Tether stops converting USDT and freezes remaining tokens on five blockchains. Called "old blockchains", the company completely removes USDT from these ecosystems.
Specifically, Tether is stopping operations on Omni Layer, Algorand, Bitcoin Cash SLP, Kusama, and EOS. Support will be maintained until September 1, 2024, so users will have enough time to transfer their stablecoins to other networks.
Tether's Changing Blockchain Strategy
Tether, the world's largest stablecoin issuer, has changed significantly in recent years. At the end of 2023, Tether partially stopped support for three of these five blockchains: Kusama, Bitcoin Cash SLP, and Omni Layer.
Although the company stated it would resume support if user activity increased, this did not happen, and Tether ultimately decided to completely stop.
"As the digital asset ecosystem evolves, Tether is committed to adapting with it. Stopping support for these old chains allows us to focus on platforms with greater scalability, developer activity, and community engagement — all critical factors in driving the next wave of stablecoin adoption," CEO Paolo Ardoino said.
In fact, Tether has reason to call these blockchains old protocols. For example, Omni Layer was once a prominent part of the crypto ecosystem in the 2010s but has been completely overshadowed. Although these protocols were important stepping stones a few years ago, their time has ended.
Tether reviewed usage data, market demand, and direct community feedback to make this decision.
So, with fewer resources, what is Tether's next step? In August last year, Ardoino declared that Tether is not pursuing its own blockchain. However, the company has committed to some blockchain infrastructures and outreach programs in recent months.
Instead, Tether will redirect its blockchain efforts in a new direction. Five months ago, the company increased support for the Lightning Network and plans to do so again.
In the future, the company will prioritize L2 protocols for USDT expansion.
Ultimately, this restructuring will provide Tether with the best opportunity to meet user needs and optimize its blockchain support infrastructure. Hopefully, the company will continue to enhance new protocols as the entire ecosystem develops.
