Tether has officially discontinued USDt stablecoin redemption services across five legacy blockchain networks: Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. This strategic move follows the company’s initiative to optimize network efficiency by shifting focus toward scalable ecosystems better suited for decentralized finance (DeFi) and modern blockchain applications.
The phase-out process affected Omni Layer the most significantly, holding approximately $82.9 million in USDt prior to discontinuation. This transition began with Tether halting new USDt issuance across these chains starting mid-2023, providing users ample redemption windows before the final cutoff.
Algorand experienced early impacts after Tether ceased USDt minting in 2023, where USDt ranked as the platform’s third-largest stablecoin. Despite USDt’s departure, Algorand’s stablecoin sector maintains activity primarily through USDC, generating $42,300 in monthly revenue prior to the transition.
The withdrawal aims to enhance USDt’s utility by concentrating resources on networks offering greater developer engagement and transaction scalability. This consolidation underscores Tether’s commitment to aligning its infrastructure with blockchain industry evolution, prioritizing ecosystems responsive to emerging financial applications.