Tether Retires USDT on Five Legacy Chains, Shifts to Layer 2

Published: 2025-07-12 16:18:07 |

On September 1, 2025, Tether will discontinue USDT support on five legacy chains: Omni Layer, Bitcoin Cash SLP, Kusama, EOS and Algorand. The company will cease token minting, redemptions and freeze remaining balances. CEO Paolo Ardoino cited low demand and outdated infrastructure. This move follows phased halts on these networks since 2023. Over 95% of Tether’s $156 billion USDT supply now circulates on Ethereum and Tron, with Solana accounting for just over 1%. Tether aims to consolidate liquidity and reinforce USDT stability on leading platforms. The firm plans to shift focus to Layer 2 networks, including Lightning Network, and newer smart contract chains offering faster settlements and enhanced developer tooling. USDT holders on retiring chains must migrate or redeem tokens via bridges or exchanges before the cutoff.

Neutral

Retiring USDT on underused blockchains and consolidating liquidity on major networks streamlines operations without affecting the stablecoin’s $1 peg. In the short term, traders on retiring chains may incur migration costs, but market stability remains intact. Long term, focusing on scalable Layer 2 platforms could enhance USDT efficiency and adoption, supporting neutral market sentiment.