Tether, the issuer of USDT, the world's largest stablecoin, has announced it will discontinue support for USDT on five legacy blockchains: Omni, Bitcoin Cash SLP, Algorand, Kusama, and EOS. This transition is scheduled to begin September 1, 2025. If you have USDT on any of these chains, it is extremely important to know what this means. Falling behind on these actions could put you at risk of losing your funds. In this client alert, we describe what this decision means for USDT holders. It offers advice on making that transition in the most productive and effective way.

Which Blockchains Are Affected and Why?

Here's a closer look at each affected chain:

  • Omni Layer: This was one of the earliest blockchains to support USDT. However, with only $82.9 million USDT remaining in circulation, Tether has decided to cease repurchasing USDT on Omni due to its limited usage.
  • Bitcoin Cash SLP: Similar to Omni, Bitcoin Cash SLP has seen low adoption of USDT, with less than $1 million remaining in circulation. Tether cited this lack of use as the reason for discontinuing support.
  • Kusama: Designed as a "canary network" for Polkadot, Kusama was intended for experimental features. However, it failed to attract significant USDT usage, with fewer than 250,000 USDT remaining in circulation.
  • EOS: Tether halted minting on EOS in June 2024 due to low usage. With only $4.2 million USDT remaining in circulation, Tether will stop repurchasing USDT on EOS.
  • Algorand: Despite its innovative technology, Algorand also experienced low USDT usage. With $841,600 remaining in circulation, Tether cited low usage and a strategic refocus as the reason for discontinuing support.

Implications for USDT Holders

The immediate implication for USDT holders on these impacted chains is having to migrate their funds. After September 1, 2025, any USDT still on these five blockchains will be frozen, making it unusable. This effectively puts users at risk of losing all access to their funds unless they proactively migrate.

Beyond the risk of frozen tokens, the removal of USDT support can have broader consequences for these blockchain ecosystems:

  • Reduced Liquidity: With Tether pulling out, the affected blockchains may experience a significant reduction in liquidity. This makes it more challenging for users to buy, sell, or trade assets on these networks.
  • Loss of Trading Volumes: The absence of USDT on these blockchains could reduce trading activity and liquidity, affecting the overall usability of USDT for holders on these chains.
  • Challenges for DApps: Decentralized applications (dApps) that rely on USDT liquidity on the deprecated chains will need to adapt to the changes.

How to Migrate Your USDT: A Step-by-Step Guide

Move your assets onto one of the supported blockchains before September 1, 2025. Undertaking this activity will ensure you do not have your USDT frozen. Here's a step-by-step guide to help you through the process:

  1. Choose a wallet app: Select a suitable wallet app and download it to your computer.
  2. Install and set up the app: Unpack the archive and install the app on your device.
  3. Add the necessary applications: In the app settings, add the Ethereum and Bitcoin applications.
  4. Create an address: Create an ETH address, then select Ethereum from the list.
  5. Log into your account: Log into your account on the exchange that accepts USDT, or register, if necessary.
  6. Go to the Tether withdrawal section: Go to the Tether withdrawal section to check the transaction status.
  7. Withdraw or bridge your USDT: Depending on the exchange and the supported networks, withdraw your USDT to a different network or use a bridge to transfer your USDT.

Recommended Exchanges and Bridge Solutions

Many centralized or decentralized exchanges and cross-chain bridges can help you move your USDT across chains. Do your research and select a platform that has compatibility with your current blockchain, as well as the blockchain you want to move to.

  • Defiway: Defiway supports the cross-chain bridge of USDT between Ethereum and Optimism with the fastest speed, lowest costs, and increased security of transactions.
  • Bridging Mechanisms: The cheapest way to bridge USDT from Ethereum to Cronos or Optimism is through a bridging mechanism that connects 2 different blockchain networks.

Impact on Affected Blockchains' Ecosystems

Tether’s exit will certainly be felt, especially among the impacted blockchains. The size of the impact will be determined by how quickly and effectively these ecosystems can adjust to the shift. Blockchains provide the perfect place to lure these alternative stablecoins. Perhaps most importantly, they have the opportunity to create cutting-edge solutions to fill this liquidity gap and lessen harmful impacts.

This means that exchanges and wallets could discontinue supporting these USDT versions after September 1, 2025, rendering them undetectable to users. So it’s essential to keep up with what’s happening in these ecosystems and be ready to pivot your strategies in response.

By taking these simple steps to migrate your USDT, you’ll not only secure your assets, but you’ll come through this transition with flying colors.