Tether Halts USDT Minting on EOS and Algorand, Citing Strategic Realignment

In a significant move that underscores the evolving landscape of blockchain-based stablecoins, Tether, the issuer of the world’s largest stablecoin USDT, announced on June 24, 2024, that it will cease minting new USDT tokens on the EOS and Algorand blockchains. This decision, effective immediately, is part of what Tether describes as a “strategic transition to prioritize community-driven blockchain support.”

The company emphasized that this move aims to strike a balance between maintainability, usage, and community interest. Tether stated that it constantly assesses current transport layers and carefully evaluates network security architectures to ensure the safety, usability, and sustainability of chosen blockchains.

While new USDT minting on EOS and Algorand has stopped, Tether will continue to support redemptions on these platforms for the next 12 months. The company has left open the possibility of further changes, which may be evaluated and announced around the end of this redemption period.

This decision impacts a relatively small portion of the total USDT supply. As of June 22, EOS-based Tether amounted to approximately $75.5 million, representing about 0.06% of the total circulating USDT. Algorand-based USDT accounted for an even smaller share, with around $17 million, or about 0.01% of the total supply.

Tether’s move follows a similar action taken in August 2023, when the company discontinued USDT minting on three other blockchains: Kusama, Bitcoin Cash’s Simple Ledger Protocol (SLP), and the Omni Layer Protocol, which was the original blockchain for USDT issuance.

Despite these reductions, Tether continues to support USDT on multiple blockchains, including Ethereum, Tron, Solana, and more recently, The Open Network (TON). In fact, Tether has been actively integrating with new networks, having launched TON-based USDT in April 2024, which now accounts for about 0.44% of the total circulating supply.

The vast majority of USDT remains concentrated on two chains: Tron, hosting approximately $59 billion, and Ethereum, with around $52 billion of the stablecoin’s total $113 billion supply.

Tether has assured its community that this transition will be executed meticulously and with minimal disruption, emphasizing its commitment to maintaining a seamless user experience. The company views this realignment as a step towards optimizing its blockchain ecosystem and allocating resources where they can best enhance security and efficiency while continuing to support innovation across the crypto landscape.