- Tether will not freeze USDT smart contracts on Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand.
- USDT tokens on these five blockchains will remain transferable, but new issuance and redemption are discontinued.
- The decision came after feedback from affected blockchain communities.
- Most USDT activity is concentrated on Tron, Ethereum, and BNB Chain, with Omni Layer most affected among the legacy chains.
- The stablecoin market is projected to grow to $2 trillion by 2028, with USDT and USDC leading in supply.
Tether announced that it will keep USDT smart contracts active on five blockchains — Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand — after receiving feedback from those communities. Users will still be able to transfer their USDT tokens on these blockchains, but Tether will no longer directly issue or redeem USDT on them.
According to a company statement made on Friday, the change means these tokens are still moveable, but they are not officially supported for issuances or redemptions as with other networks. The earlier plan had been to freeze the contracts by September 1. “Following the feedback from the communities of these discontinued blockchains, Tether has revised this approach and will not freeze the smart contracts on these networks,” Tether said in its official statement.
Tether intends to focus on supporting blockchains with strong development, user growth, and scalability such as Tron and Ethereum. Data from DeFiLlama shows that Tron has $80.9 billion worth of USDT in supply, Ethereum has $72.4 billion, and BNB Chain has $6.78 billion. Solana and some Ethereum layer-2 solutions have significant stablecoin usage but mostly use USDC, another major stablecoin.
Reviewing balances on the impacted blockchains, Omni Layer is set to see the most change, with $82.9 million in USDT circulation, while EOS holds $4.2 million. The remaining — Bitcoin Cash SLP, Algorand, and Kusama — each have less than $1 million in USDT, according to Tether’s transparency report.
Tether started reducing support for these legacy blockchains two years ago. In August 2023, it announced it would end new USDT issuance on Omni Layer, Kusama, and Bitcoin Cash SLP. In June 2024, the firm stopped minting on EOS and Algorand.
According to DeFiLlama and CoinGecko data, the total stablecoin market cap stands at $285.9 billion. USDT leads with $167.4 billion, followed by USDC at $71.5 billion.
The U.S. stablecoin sector may expand quickly. Last month, President Joe Biden signed the GENIUS Act, aiming to strengthen the U.S. dollar through stablecoin growth. The U.S. Treasury projects the stablecoin market could reach $2 trillion by 2028.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- XRP, ETH Surge: Investors Turn to APT Miner for Stable Returns
- Bitcoin Drops 13% From August Highs Amid Investor Profit-Taking
- Elon Musk’s Lawyer to Lead $200M Dogecoin Treasury Company
- Hedera Highlights Benefits of Frequent, Incremental Software Releases
- Cøbra: Bitcoin Knots Could Replace Core as Reference Client
