Tether, a leading stablecoin provider, is making changes to its US dollar-pegged stablecoin USDT by stopping the issuance of new USDT tokens on additional blockchains.
The company has announced that it will cease minting Tether (USDT) on the Eos and Algorand blockchains effective June 24, according to an official blog post on Monday.
Despite this decision, Tether will continue to redeem USDT on Eos and Algorand as per usual for the next year, with potential further changes still being considered. The transition is expected to be smooth and without major disruptions.
The move to halt USDT minting on Eos and Algorand is part of Tether’s strategy to maintain balance within its ecosystem. The company stated that it assesses each network’s security architecture to ensure safety, usability, and sustainability, aiming to allocate resources where they can enhance security and efficiency while fostering innovation.
Eos and Algorand account for less than 0.1% of the total USDT supply, with Tether transactions also available on other blockchains such as Ethereum, Tron, Solana, and The Open Network (TON).
As of June 22, the circulating supply of Eos-based Tether was $75.5 million, representing around 0.06% of the total USDT in circulation. Algorand-based USDT had an even smaller share, with approximately $17 million worth of the stablecoin, making up about 0.01% of the total circulating USDT supply.
In addition to Eos and Algorand, Tether has previously discontinued USDT minting on other blockchains, including Kusama, Bitcoin Cash SLP, and the original USDT blockchain, Omni Layer Protocol.
While dropping support for Eos and Algorand, Tether has been actively exploring new blockchain networks like TON. Since launching TON-based USDT in April 2024, Tether has minted around $500 million worth of stablecoins on this network, accounting for 0.44% of the total circulating supply, according to Tether’s data.
It’s worth noting that the first Tether tokens were issued on the Bitcoin blockchain through Omni in October 2014, marking the beginning of Tether’s journey in the cryptocurrency space.