Tether Initiates Strategic Infrastructure Overhaul, Halting USDT Redemptions on Several Blockchains
Tether, the leading issuer of stablecoins, is currently conducting a strategic review of its infrastructure, leading to the decision to suspend USDT redemptions across multiple blockchains. The affected networks include Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. The announcement was made on July 11, signaling to users about the impending phase-out of these services.
Tether Shifts Focus to More Efficient Blockchains for USDT Operations
As per the company’s announcement, the cessation of USDT redemptions on the aforementioned blockchains will be enforced starting September 1, 2025. In light of this action, Tether plans to freeze any remaining tokens on these networks. Customers who may be impacted by this change are strongly encouraged to redeem their USDT holdings promptly or to request a transfer of their tokens to a blockchain that continues to support USDT. This strategic move aims to enhance Tether’s infrastructure, aligning it more closely with user trends and redirecting resources to high-utility, actively developed blockchains.
Focus on Community Trends and Blockchain Efficiency
Tether’s decision follows a thorough assessment of usage data and market demand for each blockchain. The firm has also taken into account the perspectives of community stakeholders and infrastructure partners. While this transition does not overlook the foundational role these networks played in Tether’s early development, it indicates that Algorand and the other listed blockchains have not met the company’s current operational standards. Notably, the volume of USDT circulating on these networks has significantly decreased over the past two years.
Commitment to Evolving Market Needs
Paolo Ardoino, Tether’s CEO, underscored the company’s dedication to adapting in the fast-changing digital asset landscape. “Phasing out support for these legacy chains enables us to concentrate on platforms that provide superior scalability, developer engagement, and community involvement—essential elements for fostering the next wave of stablecoin adoption,” Ardoino stated.
Tether’s Ongoing Legal Challenges and Business Expansion
In addition to the infrastructure changes, Tether is grappling with legal challenges in the United States. According to court documents, Celsius, a crypto lending and Bitcoin mining firm that entered bankruptcy, has accused Tether of “improperly” liquidating the Bitcoin collateral it provided during its downfall. A US judge has permitted Celsius to advance with its $4 billion lawsuit claims against Tether.
Tether, however, is not solely focused on legal issues; it has a history of diversifying its business endeavors. The company is a founding member of Twenty One, a Bitcoin strategy portfolio firm led by Jack Maller, which signifies its pivot towards Bitcoin mining. Additionally, Tether is advancing its involvement in artificial intelligence with the introduction of an AI-backed SDK. While many of Tether’s diversified initiatives are still in the early stages, Ardoino has emphasized a strong commitment to AI developments in the upcoming months.
