In a significant move within the cryptocurrency industry, Tether has announced its decision to cease the issuance of new USDT tokens on the EOS and Algorand blockchains, effective from June 24, 2024. This decision marks a shift in Tether’s strategic deployment of its stablecoin, as it navigates through the evolving landscape of blockchain technologies.
The discontinuation of USDT minting on these two blockchains suggests a focus on maintaining stability and efficiency within the USDT ecosystem. Tether has pointed towards the rationale behind this move, emphasizing the importance of evaluating the security architecture and resource allocation within the network. This measure demonstrates Tether’s commitment to ensuring the integrity and reliability of its cryptocurrency.
Despite halting minting, Tether has ensured that users holding USDT on EOS and Algorand will not be left in limbo. The company has made clear that for the next 12 months following the minting cessation, it will continue to honor redemptions on both blockchains. This approach is intended to provide a seamless transition for USDT holders as they navigate away from these two platforms.
The figures as of June 22 show that Tether’s presence on EOS and Algorand is relatively minor compared to the larger USDT market circulation. EOS-based USDT accounted for about $75.5 million, or 0.06% of all circulating USDT, whereas Algorand-based USDT stood around $17 million, making up roughly 0.01% of the total supply. Despite these small percentages, Tether’s operational change holds significance for the stakeholders within these blockchain ecosystems.
Tether initially launched USDT on EOS in May 2019 and subsequently on Algorand in 2020. At the time, these integrations were considered steps towards expanding the stablecoin’s accessibility and interoperability across different blockchain networks. However, the current scaling back on these blockchains indicates a strategic pivot.
This is not the first time Tether has reevaluated its blockchain partnerships. In August 2023, the company ceased issuing USDT on Kusama, Bitcoin Cash SLP, and the original Omni Layer Protocol. With these previous decisions, Tether has shown a pattern of careful selection and reassessment of the blockchains it operates on.
While EOS and Algorand are being phased out for USDT minting, Tether is not shy from exploring new avenues. The integration with TON (The Open Network), a newer blockchain network, has seen Tether mint approximately $500 million worth of stablecoins, which currently represents 0.44% of the total USDT supply in circulation.
In conclusion, Tether’s strategic decisions reflect its ongoing analysis and adjustment to its operations across different blockchains. The commitment to a stable and secure USDT ecosystem remains a priority as the company evolves with the changing dynamics of the cryptocurrency world. While the end of minting USDT on EOS and Algorand closes a chapter, Tether’s continuous adaptation could open new avenues for the stablecoin giant.
