tether unfreezes usdt transfers

Tether has officially reversed its previous plan to freeze USDT transfers on five legacy blockchains—Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand—thereby allowing continued token movement despite halting issuance and redemption on these networks. This reversal means that while users can still transfer USDT on these blockchains, they will no longer be able to create or redeem tokens through Tether’s official channels. The affected blockchains have been reclassified as “unsupported,” signaling a shift in Tether’s strategic focus away from these older networks, which had been slated for a phased freeze culminating in September 2025. This move parallels other projects’ decisions to prioritize scalability and efficiency by focusing on more advanced chains with ongoing technical upgrades, similar to initiatives like Kaspa’s 2025 roadmap emphasizing blockchain scalability.

Omni Layer stands out as the most impacted chain, with approximately $83 million USDT in circulation, dwarfing the combined holdings on EOS, Bitcoin Cash SLP, Kusama, and Algorand, which total under $8.2 million. Despite their relatively minor share of the overall USDT supply—which exceeds 167.5 billion tokens dominated by Ethereum and Tron—these legacy chains have maintained active user bases that expressed strong resistance to the freeze proposal. Tether’s initial plan involved the cessation of issuance on Omni, Kusama, and Bitcoin Cash SLP as early as 2023, and a winding down on EOS and Algorand in 2024, followed by a complete freeze on transfers and redemptions. Ethereum and Tron will remain central to Tether’s roadmap, underscoring the focus on blockchains with proven adoption and active developer communities.

Omni Layer leads legacy chains with $83M USDT, outpacing others amid strong user opposition to freeze plans.

The company’s decision to reverse the freeze reflects a nuanced response to substantial community and developer backlash. By allowing transfers to continue, Tether demonstrates sensitivity to ecosystem realities, balancing operational streamlining with the need to preserve liquidity for token holders. It also underscores the challenge of retiring established blockchain integrations without disrupting user activity or causing asset immobilization.

While these tokens on unsupported chains retain transferability, holders must recognize they lack official backing for redemption or conversion. Tether’s strategic emphasis now centers on blockchains with significant adoption and developer engagement, primarily Ethereum and Tron, which collectively account for over $153 billion in USDT circulation. Legacy chains are effectively deprioritized but remain accessible, facilitating a gradual, less disruptive phase-out aligned with evolving market dynamics. Tether will not support new issuances or payments on these unsupported networks, requiring users to transfer tokens to supported chains for full functionality.

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