Hot off the press: Tether has backtracked on its previous decision to freeze USDT operations across five legacy blockchains. The smart contracts for Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand will not be frozen after all. Users can still transfer their tokens within these networks—though direct issuance and redemption will cease.
What Changed—and What It Means for You
Let's break this down clearly:
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Original Plan (Phased Withdrawal):
Previously, Tether announced it would fully freeze all operations of USDT—including transfers, redemptions, and minting—on those five blockchains starting September 1, 2025. This was part of a broader strategy to shift focus toward more scalable, developer-active networks like Ethereum, Tron, and various Layer 2 solutions. -
Why the Reversal?
Community feedback played a pivotal role. Following strong responses from users and developers active on the affected chains, Tether adjusted its course.
Quick Snapshot: Then vs. Now
| Key Feature | Previous Plan | Updated Plan (as of now) |
|---|---|---|
| Transfers | Frozen from Sept 1, 2025 | Still possible—smart contracts remain active |
| Issuance (Minting) | Stopped earlier (on some chains) | Still discontinued (no new issuance) |
| Redemptions | Discontinued | Still discontinued—cannot redeem |
| User Action Required? | Redeem or migrate by Sept 1 | Transfers possible—but issuance/redemption stopped |
Why This Matters to You
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Flexibility Remains:
If you hold USDT on any of the five legacy blockchains, you can still move them to other addresses within the same network. This gives you breathing room to plan your next move. -
But Options Are Limited:
issuance and redemption channels are officially closed. You won’t be able to convert to fiat or mint new tokens on these chains through Tether. -
Strategic Focus Shifts:
Tether is reallocating resources toward networks with stronger scalability, developer engagement, and active communities—think Ethereum, Tron, Solana, and Layer 2 ecosystem.
Bottom Line
Tether heard the community—and changed course. While the freeze is off the table, issuance and redemption are still halted. Users on Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand can transfer their USDT—but moving forward, it’s clear where Tether sees stablecoin utility heading: toward more vibrant, scalable, and engaged blockchain ecosystems.
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