Tether Halts USDT Issuance on EOS and Algorand Blockchains

Tether, a leading player in the stablecoin market, has announced its decision to immediately discontinue support for the EOS and Algorand blockchain implementations of USDT. Effective June 24, 2024, this strategic move is part of Tether’s ongoing commitment to maintaining a robust and innovative blockchain ecosystem while focusing resources on platforms that best serve the community’s needs.

In a blog post, Tether emphasized the importance of community-driven support and resource allocation. The decision to stop minting new USDT on these platforms reflects Tether’s dedication to optimizing its blockchain ecosystem. The company seeks to strike a balance between maintainability, usage, and community interest.

The Current Landscape

USDT, the dollar-linked stablecoin, was launched on the Algorand blockchain in 2020. However, adoption on Algorand has been minimal, with only $17 million USDT held by 39,000 holders. Similarly, on the EOS blockchain, where USDT was introduced in May 2019, there are currently $85 million USDT tokens distributed among 32,000 holders. These figures represent a tiny fraction of the overall USDT supply, which has a market cap of $112 billion.

Redemption Continues

Despite ceasing new USDT minting on EOS and Algorand, Tether will continue to redeem existing USDT on these platforms for the next 12 months. The company also hinted that further changes may be evaluated and announced during that time.

Expanding Presence

While withdrawing from Algorand and EOS, Tether is actively expanding its presence on new blockchain networks. In April 2024, Tether launched USDT on The Open Network (TON), minting approximately $500 million of stablecoins on this platform. This represents 0.44% of the total circulating supply of USDT.

Tether’s decision underscores the dynamic nature of the crypto ecosystem. As the industry evolves, stablecoin issuers like Tether must adapt to community needs, security concerns, and technological advancements. The halt in USDT issuance on EOS and Algorand reflects Tether’s commitment to fostering innovation while ensuring stability and trust in the crypto market.