Tether, the issuer behind the world’s most popular stablecoin USDT, announced that it will no longer freeze USDT tokens on certain legacy blockchains, such as itcoin">Bitcoin Cash, Kusama, EOS, and Algorand. Instead, these platforms will be classified as “unsupported,” marking a major policy revision after significant community criticism. While Tether will no longer issue or redeem USDT on these networks, users will still retain the ability to transfer tokens between wallets, ensuring that assets are not stranded.
Originally, the company had outlined plans in June to implement a hard freeze on USDT tokens across several older blockchain networks beginning September 1, 2025. This freeze would have made tokens non-transferable and non-redeemable, isolating them from functionality. The decision was initially framed as a move to streamline operations on networks that contributed minimally to overall USDT usage. However, sustained backlash from developers and users—predominantly from ecosystems like EOS and Algorand—prompted Tether to reconsider its strategy. According to Tether, this new classification aligns with its broader operational goals while mitigating negative impacts on its user base.
Tether’s shift comes at a time when the company has announced plans to issue USDT natively on itcoin">Bitcoin using the RGB protocol, marking an innovative pivot for the stablecoin’s development. Unlike custodial bridge solutions, RGB integrates directly with itcoin">Bitcoin’s security model for greater transparency and decentralization. Tether’s decision highlights its evolving focus: redirecting resources to platforms with higher adoption rates—such as Ethereum and Tron—while staking new ground with projects on itcoin">Bitcoin. Currently, Ethereum and Tron dominate USDT usage, with over $80 billion in circulation across the two networks.
This decision reflects a broader trend in Tether’s operational priorities—consolidating its presence on high-volume platforms while disengaging from networks with limited user activity. By adopting the “unsupported” classification rather than implementing freezes, Tether avoids reputational damage and maintains goodwill within the crypto community. With new plans to integrate USDT deeply into itcoin">Bitcoin’s infrastructure, Tether continues to evolve its offerings to meet the changing needs of the blockchain space.
