Tether deserted plans to freeze its dollar-pegged USDT tokens on a number of older blockchains and is selecting as a substitute to categorise them as “unsupported,” in accordance with an Aug. 29 assertion.
The change applies to networks resembling Bitcoin Money, Kusama, EOS, and Algorand, amongst others. Customers will nonetheless have the ability to transfer tokens throughout wallets, however Tether will not difficulty or redeem USDT on these platforms.
The shift got here after weeks of group pushback over the corporate’s authentic plan, which might have locked tokens in place and left them non-transferable.
‘Unsupported’ classification
In June, Tether had outlined a transition that may start Sept. 1, 2025, with all USDT on the affected blockchains frozen and excluded from redemptions.
The transfer was framed as a technique to streamline operations by reducing off help for networks that accounted for a negligible share of the stablecoin’s exercise. Beneath that plan, tokens would have remained seen on-chain however successfully stranded with none motion or redemption path.
Following sustained criticism from builders and customers on smaller ecosystems like EOS and Algorand, Tether retreated from a tough freeze. The agency mentioned the revised method “aligns with its broader technique” whereas avoiding reputational harm.
The compromise permits Tether to wind down low-volume chains with out upsetting backlash from customers who would have been locked out of their property.
Pivot towards Bitcoin
The announcement got here simply sooner or later after Tether disclosed plans to difficulty a local USDT on Bitcoin utilizing the RGB protocol.
In contrast to wrapped tokens that depend on custodial bridges, RGB integrates immediately with Bitcoin’s scripting and client-side validation, making USDT a part of the Bitcoin ecosystem’s safety mannequin.
USDT stays most closely focused on Ethereum and Tron, every with greater than $80 billion in circulation, alongside smaller footprints on Solana and some different networks.
The choice to drop help for legacy chains alerts tightening sources on platforms with increased adoption whereas staking new floor on Bitcoin.
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