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Tether to End Bitcoin Omni USDT, Eyes New Lightning Protocols

  • Tether will end support for USDT tokens on Bitcoin’s Omni layer on September 1, 2025.
  • USDT redemptions on the Omni layer will stop and tokens will be frozen after this date.
  • The company announced plans to explore new Bitcoin Lightning Network protocols despite ending major Bitcoin-related support.
  • Support will also end for USDT on EOS, Algorand, SLP, and Kusama blockchains.
  • Tether previously disclosed inconsistencies in backing its tokens and has settled such matters with regulators.

On September 1, 2025, Tether will terminate support for most of its USDT tokens on Bitcoin, including those using the Omni layer. The company describes this change as part of a “strategic infrastructure review.” After this date, USDT redemptions on the Omni layer will cease, and the tokens will be manually frozen.

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Currently, the only USDT-on-Bitcoin tokens that will remain are less than $50 million on Blockstream’s Liquid network, which is a sidechain managed by participating companies. Tether announced this decision in July, stating that the Omni layer does not offer the necessary “high-utility” or active development compared to other blockchains the company continues to support.

“Bitcoin’s Omni layer wasn’t ‘high-utility, actively developed’ infrastructure ‘aligned with community usage trends’ as much as other blockchains,” Tether said in a public statement. The company has supported the Omni layer since at least October 2014.

On the same day it confirmed ending Omni support, Tether revealed plans to explore Bitcoin Lightning Network protocols, including Taproot Assets and RGB. These are technical upgrades that allow faster and potentially more scalable Bitcoin transactions, but such support is not yet live. Tether supports USDT redemptions on several blockchains, such as Tron, Ethereum, Solana, Aptos, and others.

Support for USDT on EOS, Algorand, SLP, and Kusama will also end on September 1. After that, the company’s Bitcoin-based USDT activity will mostly involve the Liquid sidechain, while its exploration of Lightning Network solutions continues.

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In addition, Tether has previously admitted to inconsistencies in how it backed USDT tokens between June and September 2017, according to a settlement agreement signed with regulators. The company also paid the Commodity Futures Trading Commission $41 million over similar claims, according to a CFTC press release.

As of now, Tether says it is continuing to evaluate new blockchain and protocol opportunities for USDT while reducing support for less-used blockchains and legacy systems.

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