Tether Revises Plan After User Pushback

Stablecoin issuer Tether has announced a major change to its blockchain transition strategy. On August 29, 2025, the company confirmed it will no longer freeze USDT tokens on older networks such as Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand.

Instead of freezing assets outright, Tether will stop issuing and redeeming USDT on these blockchains, effectively leaving tokens in circulation but designating them as “unsupported.” Users can still transfer them between wallets, but the tokens will lack the same official backing and redemption mechanisms as those on active chains like Ethereum and Tron.

Why the Policy Changed

Originally, Tether planned to freeze and redeem legacy tokens starting September 1, 2025. However, strong pushback from developer communities and token holders prompted a revision. Critics argued that freezing tokens risked stranding or destroying assets that users still held, creating a reputational and trust crisis.

By leaving tokens transferable but unsupported, Tether has avoided outright destruction while reducing its operational burden of maintaining low-traffic blockchains.

“While users will still be able to transfer the tokens between wallets, Tether will discontinue direct issuance and redemption on these blockchains. This means the tokens will no longer be officially supported as other Tether tokens,” the company said in its statement.

Balancing Reputation and Strategy

The decision highlights Tether’s effort to strike a balance:

• Operational efficiency by cutting ties with underused chains.
• Community relations by avoiding a complete freeze that could have destroyed assets.
• Strategic positioning by shifting resources toward higher-demand ecosystems.

EOS and Algorand communities, in particular, had raised concerns that a full freeze could harm users still active on those networks. The compromise keeps the assets alive, though without redemption guarantees.

Strategic Shift Toward Bitcoin

Tether’s retreat from legacy chains coincides with a new expansion effort. Just one day before the legacy support announcement, Tether unveiled plans to launch USDT natively on Bitcoin via the RGB protocol.

This marks a strategic pivot toward Bitcoin’s foundational security. Unlike wrapped assets or bridged tokens, RGB enables USDT to exist natively within Bitcoin’s ecosystem, with private, lightweight transfers and offline payment functionality.

Combined with Ethereum and Tron—each hosting more than $80 billion worth of USDT—and secondary deployments on Solana, Avalanche, Celo, and Cosmos, the RGB integration positions Bitcoin as a core settlement layer for the world’s largest stablecoin.

Why It Matters

Tether’s dual strategy—cutting low-traffic chains while expanding on Bitcoin—underscores the company’s long-term vision:

• Streamline operations by focusing on networks with scale and liquidity.
• Reduce counterparty risk by leveraging Bitcoin’s own security.
• Ensure USDT continues to dominate the stablecoin market, which now exceeds $267 billion in circulating supply.

While some users on discontinued chains may face uncertainty, the pivot highlights Tether’s preference for ecosystems that align with its global liquidity and infrastructure strategy.

Bottom Line

Tether will no longer freeze USDT on Omni, BCH SLP, Kusama, EOS, or Algorand, but the assets on those chains will become “unsupported”—transferable but without redemption or official backing.

At the same time, Tether is doubling down on Bitcoin by launching USDT via RGB, signaling a move toward Bitcoin-native stablecoins while streamlining legacy operations.

This dual approach shows how Tether is consolidating its presence in major ecosystems while experimenting with Bitcoin’s future utility.