Tether, the issuer of the world’s most widely used stablecoin USDT, has announced that it will discontinue support for EOS and Algorand. According to the announcement, Tether will cease minting new USDT tokens on these two blockchains starting today. However, the company has assured that USDT redemptions on EOS and Algorand will continue for the next 12 months, giving users ample time to adjust to the change.
Tether to Streamline its Operations
This strategic move reflects Tether’s ongoing efforts to streamline its operations and focus on platforms with higher demand and broader adoption. While EOS and Algorand have their dedicated user bases, the decision to halt USDT minting on these platforms likely stems from a combination of factors, including user activity levels, market demand, and operational considerations.
Tether’s management has been clear that their goal is to optimize the performance and efficiency of USDT across the most impactful blockchain networks. Despite the cessation of new USDT issuance, Tether is committed to ensuring a smooth transition for its users.
Notably, Tether’s decision comes when the stablecoin market is experiencing rapid growth and evolution. The company continues to dominate the stablecoin sector, with USDT playing a critical role in trading, remittances, and as a store of value.
Exchanges Discontinues Support for USDT
In March, cryptocurrency exchange OKX discontinued its support for Tether trading pairs. The move indicated a shift in the exchange’s strategy, emphasizing EUR and USDC pairs for spot trading while shelving USDT pairs. Alongside the announcement, OKX hinted at the launch of over 30 new euro spot trading pairs, to provide users with alternative options amid the removal of USDT pairs.
Similarly, the Kraken exchange halted USDT and other coins in Canada. Earlier in the year, the United Nations officially recognized Tether USD as a means of fraud and scams in the Southeast Asian region. This statement came when regulators worldwide were working on establishing a framework for stablecoins and digital assets.
Tether Expand its Position Across Several Blockchains
While some exchanges have discontinued their support for USDT, it continues to expand its position across several blockchains. In 2022, Tether announced the launch of its native dollar-backed token on the Polkadot blockchain. Invariably, USDT’s addition to the Polkadot blockchain will mitigate the likely repercussions of market volatility.
So far, the Tether USDT has been listed on over ten networks including Ethereum (ETH), Celo, Kava (Cosmos), Solana (SOL), Liquid Network, Tron, Avalanche, NEAR, and TON.
Meanwhile, in 2023, Tether made public its practice of maintaining a $3.3 billion liquidity buffer. This strategic measure serves a twofold purpose. First, to uphold stability within the USDT ecosystem and to nurture unwavering trust among its diverse stakeholders. Just recently, Binance, one of the world’s largest cryptocurrency exchanges, announced the integration of Tether (USDT) deposits and withdrawals on the Toncoin (TON) network.
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