Key Notes
- As part of a strategic infrastructure review, Tether announced that it will suspend USDT redemption on Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand.
- This development will become effective on September 1, 2025, reshaping the stablecoin’s accessibility.
- Tether maintains a diverse business with legal woes and acquisitions.
Largest stablecoin issuer Tether is undergoing a strategic infrastructure review, and it requires that it suspend USDT redemption on several blockchains. The named blockchains include Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. The firm announced the update on July 11, preparing its users for the eventual sunset move.
Tether Moves on to More Efficient Blockchains for USDT Circulation
According to the announcement, the discontinuation of USDT redemptions on the Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand blockchains will take effect on September 1, 2025. As a result of this decision, the USDT issuer will freeze the remaining tokens on the networks mentioned above.
Hence, customers who are likely to be affected by the decision are advised to redeem their holdings as soon as possible. Alternatively, this group of people may request that their USDT be transferred to a supported blockchain.
Tether made this move as a way of optimizing its infrastructure, aligning with community usage trends, and refocusing resources toward high-utility, actively developed blockchains. Tether had taken out time and resources to conduct a comprehensive analysis of each blockchain’s usage data and market demand.
It has also taken cognizance of the views of community stakeholders and infrastructure partners regarding each of them. The new development in no way attempts to downplay the foundational contributions of these networks, especially during Tether’s early growth.
However, the final decision suggests that Algorand and the other listed blockchains have not efficiently met the standards of the stablecoin firm. Unfortunately, the volume of circulating USDT on each of them has seen a notable decline in the last two years. Paolo Ardoino, CEO of Tether, highlighted the company’s commitment to adapting to the constant evolution of the digital asset market.
“Sunsetting support for these legacy chains allows us to focus on platforms that offer greater scalability, developer activity, and community engagement — all key components for driving the next wave of stablecoin adoption,” Ardoino explained.
From all indications, Tether is keen on providing its global user base with top-notch services. This includes emerging blockchains that deliver improved interoperability, speed, and ecosystem growth.
Beyond Infrastructure, Tether Boasts Business Diversification
Meanwhile, the stablecoin issuer is still facing some legal problems in the United States. Based on the details outlined in a court document, Celsius, a crypto lending and Bitcoin mining firm that filed for bankruptcy , claimed that Tether “improperly” liquidated the Bitcoin collateral it provided following its collapse.
Despite the initial legal brawl, a US Judge has now allowed Celsius to proceed with its $4 billion lawsuit claims.
Beyond this, the company has a history of diversifying its business portfolio. The company is one of the founding entities behind Twenty One, a Bitcoin strategy portfolio firm led by Jack Maller. Notably, this builds on the Bitcoin mining pivot of the stablecoin issuer that has helped maintain its relevance in the industry.
Tether is also pushing for deep AI engagements with the launch of Tether data AI-backed SDK . While most of its diversified products are still in their early phases, Paolo Ardoino has reiterated full focus on AI in the coming months.
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