Tether's Strategic Shift: Why Legacy Blockchains Are Losing USDT Support

In a move signaling the evolving landscape of digital assets, Tether is discontinuing USDT support on five legacy blockchains: Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand, effective September 1, 2025. This decision, according to Tether, is part of an infrastructure optimization strategy, focusing resources on more scalable and actively developed blockchains. The company's CEO, Paolo Ardoino, emphasized the need to adapt to the changing digital asset ecosystem, prioritizing platforms with greater scalability and developer activity. The shift reflects a broader trend within the crypto industry. Omni Layer, the original home of USDT, has seen a significant decline in usage, with only about $82 million remaining in circulation compared to the $888 million issued over time. Tether is now directing its focus towards Layer 2 solutions and high-performance platforms, such as the Lightning Network. This strategic pivot is also mirrored by competitors; for example, Circle's USDC saw an 81.42% increase in adoption in the past month, reaching a market cap of $63.51 billion. Customers holding USDT on the affected blockchains are advised to redeem their holdings or migrate them to supported chains before the deadline. As of July 13, 2025, Tether's market capitalization exceeded $150 billion.