Tether Halts USDT Issuance on Five Chains, Keeps Transfers
Tether has halted USDT issuance and redemption on five chains while keeping transfers active. The move follows community feedback and aligns with Tether’s strategic focus on high-demand blockchains like Tron and Ethereum. USDT issuance on Omni Layer, EOS, Algorand, Kusama and Bitcoin Cash SLP is now stopped, though existing balances remain transferable. These chains hold under $90 million in USDT combined, led by $82.9 million on Omni and $4.2 million on EOS. Tron and Ethereum still dominate, with $80.9 billion and $72.4 billion in circulation, followed by $6.78 billion on BNB Chain. Other networks such as Solana, Arbitrum and Base mainly use USDC. Since August 2023, Tether has phased out support for minor chains and paused minting on EOS and Algorand in June 2024. Traders should watch liquidity and integrations closely, as limited USDT issuance may affect market access.
Neutral
The decision to stop USDT issuance on five minor chains while maintaining transfers is unlikely to affect USDT’s overall supply or price. The bulk of USDT remains on Tron and Ethereum, so short-term liquidity impacts are limited to small networks holding under $90 million. Long-term market behavior should remain stable as major chain support continues and demand for USDT persists. Therefore, the news is market neutral for USDT.