Tether reverses freeze plan, allows USDT transfers on five blockchains while halting issuance. Focus shifts to DeFi and growth.
Tether made a significant reversal in its plans to freeze USDT smart contracts on five blockchains. The stablecoin issuer announced that, instead of halting the transfer of tokens on these networks, it would allow users to continue transferring USDT between wallets. However, Tether will cease to issue and redeem tokens on the affected blockchains. A wide range of informed the move of community feedback on the Omni Layer, Bitcoin Cash SLP, Kusama, EOS and Algorand.
Tether Limits Legacy Blockchain Support After Community Feedback
First, in July 2024, Tether announced that it would cease to support these legacy blockchains. This plan, which would have taken place on September 1, 2025, consisted of the abandonment of all redemissions and the freezing of the USDT tokens on such networks. Tether had planned to restrict the usage of USDT on blockchains that ceased to reflect considerable developer activity or user demand. But having received some useful feedback on the part of users and community members on these platforms, Tether decided to change its strategy.
In the most recent update, Tether has made it clear that although the USDT tokens can still be moved across wallets, they will no longer be officially supported as other Tether tokens. It implies that the tokens cannot be redeemed or issued on these blockchains although they can still be transferred. This is a change in strategy on the part of Tether which now concentrates on serving ecosystems with an increased level of developer activity and more scalability.
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The company said this move falls under its overall strategy of focusing on the blockchains that have the strongest demand and future growth prospects. Tether can position the stablecoin as a reliable and flexible one within the constantly evolving crypto environment by targeting platforms with a high level of user engagement and growth. Tether will work with its community to make the transition smooth and communicate clearly throughout the process.
Tether’s Support for Blockchains Signals Shift in Stablecoin Strategy
Several quarters showed interest in Tether’s decision to continue supporting the five affected blockchains. Community members from different ecosystems, who had earlier raised concerns, welcomed the news. Many feared Tether’s initial plans could hurt liquidity and transaction volumes. However, Tether’s revised approach has eased those concerns, allowing users to interact with USDT on these blockchains without interruption.
The move is also an indication of a change in the overall Tether strategy. Tether is already trending toward the future of decentralized finance (DeFi) and blockchain ecosystems as it prioritizes scalability, developer activity, and user demand. Tether will still apply the freeze on redemptions and issuances to the legacy chains. However, allowing token transfers is seen as a practical and lenient decision. It also emphasizes the role played by community feedback in the future of the stablecoin market.
Finally, the fact that Tether chose to withdraw the freeze plan proves the dedication of the company to transparency and interaction with the users. With the development of cryptocurrency and blockchain, the adaptation to the needs of users, as well as to the change of the market, is the key to the long-term success of any platform.
