In a significant policy reversal, stablecoin issuer Tether has announced it will not proceed with its initial plan to completely terminate support for its USDT stablecoin on five legacy blockchains. The decision, which affects the Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand networks, follows extensive feedback from the respective community ecosystems. Instead of freezing the smart contracts and rendering tokens inoperable, Tether has opted for a nuanced approach: it will discontinue direct issuance and redemption services on these chains, but existing tokens will remain transferable and liquid.
This strategic adjustment, according to a Tether statement, is part of a broader initiative to streamline operations and dedicate resources to crypto ecosystems that exhibit robust user demand and high developer activity. "The goal is to concentrate our support on networks that have demonstrated strong utility and growth," a Tether spokesperson noted. "However, we also recognize the importance of not disrupting existing liquidity and use cases on these foundational chains."
The networks most directly impacted by this shift are Omni Layer, which currently holds a net circulation of approximately $82.9 million USDT, and EOS, with a smaller but significant $4.2 million. The remaining chains Bitcoin Cash SLP, Algorand, and Kusama each have less than $1 million USDT in circulation, highlighting the strategic rationale behind Tether’s decision to de-emphasize them.
Financial analysts view this move as a pragmatic consolidation effort within the stablecoin market. "This isn't an abandonment; it's a strategic de-prioritization," explained one market analyst. "Tether is effectively telling the market it’s moving on to greener pastures, but it's not going to disintermediate existing users. This maintains its reputation and prevents a fragmented user base, a key challenge in the multi-chain stablecoin landscape."
In conclusion, Tether's pivot underscores a forward-looking approach to stablecoin management. By balancing operational efficiency with community goodwill, the company is positioning itself to focus on the next generation of high-growth blockchain networks while gracefully exiting those that have seen a decline in usage. For investors and users, this means liquidity on these legacy chains is preserved, encouraging a smooth transition rather than a disruptive freeze.
Tether,USDT,stablecoin,blockchain,crypto
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