Tether Halts USDT on Five Chains and Focuses on Ethereum, Tron

Published: 2025-09-01 02:29:24 |

Stablecoin issuer Tether reversed its plan to freeze USDT smart contracts on Omni Layer, Bitcoin Cash SLP, Kusama, EOS and Algorand. Instead, it will halt USDT issuance and redemption on these five chains while allowing transfers to continue. This shift follows community feedback and aligns with a strategy to streamline operations. These networks carry minimal supplies—Omni Layer under $83 million, EOS just over $4 million and the others below $1 million. Tether froze new mints on Omni, Kusama and Bitcoin Cash SLP in August 2023, and on EOS and Algorand in June 2024. The issuer will now focus on high-demand ecosystems such as Ethereum (USDT supply $72.4 billion), Tron ($80.9 billion) and BNB Chain ($6.78 billion). The total stablecoin market cap stands at $285.9 billion, led by USDT ($167.4 billion) and USDC ($71.5 billion). U.S. policy support and the GENIUS Act are expected to fuel growth towards a $2 trillion market by 2028.

Neutral

By halting issuance on minor chains and focusing on major networks, Tether reduces operational complexity without affecting USDT’s peg. Supply on primary chains remains stable, and transfers continue on small networks, causing minimal market disruption. In the short term, this action is unlikely to move USDT off-peg or impact liquidity. Over the long term, streamlined support may strengthen confidence but the immediate price impact on USDT is neutral.