USDT's New Strategy: Phasing Out Legacy Networks Without Freezing Funds
- Keyword Financial
- Aug 29
- 3 min read
Introduction
Tether has reversed its earlier decision to freeze USDT circulating on older, less active networks. Instead, these blockchains—including Omni, Bitcoin Cash SLP, and Kusama—will now be classified as “unsupported.” This means that while no new USDT will be issued or redeemed on these platforms, existing tokens won’t be frozen, allowing holders to retain use of them on secondary markets. The shift follows community feedback urging Tether not to risk user funds through aggressive freezes, as it could have disrupted liquidity and harmed investors.
By labeling these networks as unsupported rather than actively freezing them, Tether balances its exit from legacy ecosystems with a softer impact on market participants. Users will still be able to move USDT on exchanges that continue to support those tokens, though functionality on-chain will be limited as Tether redirects its technical and development resources toward more widely adopted and scalable blockchains. The company emphasized its intent to prioritize interoperability and security across chains like Ethereum, Tron, and Solana, where the majority of USDT activity takes place.
The decision also highlights Tether’s strategic direction: offloading maintenance burdens tied to underutilized networks while ensuring continuity of service for token holders. By leaving legacy USDT operational rather than frozen, Tether mitigates reputational and operational risks. This choice aligns with their broader goal of focusing on the ecosystems that drive innovation and adoption, while giving users autonomy in managing older tokens, albeit with reduced official support going forward. (CryptoSlate)
