In a move that may surprise some users, Tether, the issuer of the world’s leading stablecoin, USDT, announced plans to cease issuing new USDT tokens on the Algorand and EOS blockchains. This decision, effective immediately, follows a similar move Tether made last year regarding the Omni Layer Protocol on Bitcoin.
Tether cites a focus on “community interest, maintainability, and usage” as key factors in its decision. The company emphasizes its commitment to robust security architecture for the blockchains it supports, ensuring the safety, usability, and long-term viability of USDT.
While the reasons behind dropping Algorand and EOS specifically remain undisclosed, it suggests these blockchains may not have met Tether’s stringent standards in these areas. However, users holding USDT on either platform can breathe a sigh of relief. Tether assures them that redemption of USDT on both EOS and Algorand will continue for the next 12 months, allowing for a smooth transition.
This strategic shift by Tether reflects a broader trend in the company’s approach to USDT issuance. Previously, Tether discontinued minting USDT on the Omni Layer Protocol, Kusama, and Bitcoin Cash Simple Ledger Protocol (SLP) blockchains. This streamlining leaves coin holders with a smaller pool of supported blockchains, including Ethereum, Tron, Solana, and Avalanche. Notably, Ethereum and Tron currently host a significant portion of the total coin supply.
The impact of this latest move on Algorand and EOS remains to be seen. However, Tether’s decision to integrate USDT into the Toncoin ecosystem through Binance suggests the company is actively seeking out blockchains that align with its evolving priorities. This integration could potentially bolster the utility of the Toncoin network and position it favorably within the ever-changing regulatory landscape.
With Tether constantly reassessing its blockchain partnerships, users can expect further developments in the future. As the stablecoin market continues to mature, Tether’s strategic choices will likely influence the direction of the entire cryptocurrency ecosystem.
