Tether, a prominent stablecoin provider, is making changes to its leading US dollar-pegged stablecoin USDT by ceasing the issuance of new USDT tokens on additional blockchains.
The company has officially announced that it will no longer be creating Tether (USDT) on the Eos and Algorand blockchains effective June 24. However, Tether will continue to redeem USDT on Eos and Algorand as usual for the next year, with potential further adjustments to be considered.
This transition aims to be smooth and seamless, with Tether emphasizing the importance of maintaining a balanced Tether ecosystem. The decision to halt USDT minting on Eos and Algorand is part of the company’s strategy to ensure security, usability, and sustainability within the chosen blockchain networks.
Despite Eos and Algorand accounting for less than 0.1% of the total USDT supply, Tether facilitates transactions on 17 different blockchains, including Ethereum, Tron, Solana, and The Open Network (TON).
As of June 22, the amount of Eos-based Tether in circulation was $75.5 million, representing a small fraction of the overall circulating USDT supply. Similarly, Algorand-based USDT makes up only about 0.01% of the total USDT in circulation.
Tether’s move to discontinue USDT issuance on Eos and Algorand follows previous decisions to stop minting on other blockchains, such as Kusama, Bitcoin Cash SLP, and the original USDT blockchain through Omni Layer Protocol. Tether’s first tokens were issued on the Bitcoin blockchain via Omni in October 2014.
While phasing out Eos and Algorand, Tether has been actively exploring new blockchain networks like TON. Since introducing TON-based USDT in April 2024, Tether has created approximately $500 million worth of stablecoins on TON, accounting for 0.44% of the total circulating supply.
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