30-8-2025 – Stablecoin issuer Tether has reversed its decision to freeze USDT smart contracts on five blockchain networks following community pushback, allowing token transfers to continue while ending new issuance and redemption services.
The policy shift affects users on Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand networks, where Tether announced Friday it will maintain transferability but discontinue official support. Omni Layer faces the largest impact with $82.9 million in circulating USDT, while EOS holds $4.2 million and the remaining three networks each contain less than $1 million worth of tokens.
Tether’s decision reflects its strategic focus on blockchain ecosystems with substantial developer activity and user adoption. The company maintains primary support for Tron and Ethereum, which host $80.9 billion and $72.4 billion in USDT supply respectively, while BNB Chain ranks third at $6.78 billion according to DeFiLlama data. The sunsetting process began two years ago, with Tether gradually halting new issuance across these smaller networks.
The move comes as the broader stablecoin market reaches $285.9 billion in total capitalization, led by USDT at $167.4 billion and USDC at $71.5 billion. Recent US legislation including the GENIUS Act is expected to boost dollar-pegged stablecoins, with Treasury projections showing the market could reach $2 trillion by 2028.
