Tether Redefines USDT on Legacy Networks as “Not Supported”

Tether is implementing a modification in its approach to managing USDT on certain legacy blockchains it previously backed. Instead of freezing these tokens, the firm is designating them as“unsupported.” This pertains to platforms such as Omni Layer, BTC Cash SLP, Kusama, EOS, and Algorand.

Transfers Will Remain Functional

If you’re holding USDT on any of the mentioned chains, you are still able to send and receive them. What’s changing is the capability to mint new tokens or redeem them directly from Tether. This reclassification maintains the functionality of those older tokens while enabling Tether to concentrate on chains that are more actively utilized today.

Feedback from the Community Influenced the Decision

The news wasn’t developed in isolation. Tether highlighted that it took into account input from developers and users engaged on these earlier networks. Instead of terminating access completely, this adjustment allows users to keep utilizing the tokens if they wish, without relying on Tether to maintain full price floor moving forward.

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Tether is Refocusing on High-Utility Networks

This choice is part of a broader initiative towards operational networks that cater to substantial user populations and bolster expanding ecosystems. ETH and Tron are principal focuses, along with emerging Layer 2 networks that are gaining notable popularity. This enables Tether to concentrate its resources where USDT is in greatest buyer interest.

USDT to Bitcoin via RGB

Concurrently, Tether is broadening its scope. The organization intends to unveil a native version of USDT on BTC utilizing RGB, a smart contract framework designed for Bitcoin’s infrastructure. This implies that users will have the capacity to engage with USDT directly on BTC, without the need for bridges or intermediary chains.

Streamlining Internal Processes

Tether has upheld a lengthy list of supported chains over time. Some have experienced minimal usage, creating unnecessary strain. By reducing and concentrating on more active chains, Tether simplifies its management of USDT on the backend.

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Holders Have Migration Options

For individuals wishing to transfer their USDT to a chain that is fully supported, tools are already available for that purpose. A number of wallets and exchanges facilitate cross-chain swaps or redemptions. There’s no urgency to migrate, yet the option remains for those who wish to leverage additional features on active networks.

DeFi and Integration Aspirations

The announcement also mirrors the current direction of the stablecoin sector. The majority of contemporary DeFi operations exist on a limited number of blockchains, and Tether is adapting its presence correspondingly. Concentrating available volume in these areas aids DeFi tools, dApps, and protocols in integrating USDT more efficiently.

What’s Next

From this point onward, the networks categorized as unsupported will not receive updates, redemptions, or new token issuance from Tether. Transfers between wallets will continue to function as usual. For individuals contemplating the future, the BTC RGB launch might represent the next significant advancement for USDT, integrating the stablecoin to the largest and most established blockchain in an unmediated manner.

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