Tether has deserted plans to freeze dollar-covered USDT tokens on a number of older blockchains, and as an alternative selected to categorise them as “unsupported” in keeping with an announcement on August 29.
This variation applies particularly to networks equivalent to Bitcoin Money, Kusama, EOS, and Algorand. Customers can nonetheless transfer tokens throughout their wallets, however Tethers will not problem or redeem USDTs on these platforms.
The shift got here after weeks of neighborhood pushbacks to the corporate’s unique plans.
“Unsupported” classification
In June, Tether outlined the transition that started on September 1, 2025, with all USDTs on the affected blockchain frozen and excluded from redemption.
The transfer was framed as a solution to streamline operations by blocking help for networks that account for negligible shares of Stablecoin exercise. Below that plan, the token remained seen within the chain, however was successfully left behind with out motion or purple pathways.
Following sustained criticism from builders and customers of small ecosystems like EO and Algorand, Tether has retreated from a fierce freeze. The corporate stated the revised strategy was “coordinated with a broader technique,” avoiding reputational harm.
A compromise permits tethers to shave off the low capability chain with out inflicting a rebound from customers who had been trapped from their belongings.
Pivoting in the direction of Bitcoin
The announcement comes sooner or later after Tether disclosed its plans to problem native USDT to Bitcoin utilizing the RGB protocol.
Not like wrapped tokens that depend on Custodial Bridges, RGB integrates straight with Bitcoin scripting and client-side validation, with USDT changing into a part of the Bitcoin Ecosystem safety mannequin.
USDT is most concentrated in Ethereum and Tron, every with over $80 billion in circulation, along with the low footprint of Solana and several other different networks.
The choice to drop help for legacy chains exhibits that it’s going to tighten sources on platforms with increased adoption, setting new floor in Bitcoin.
