Tether has abandoned plans to freeze dollar-covered USDT tokens on several older blockchains, and instead chose to classify them as “unsupported” according to a statement on August 29.
This change applies especially to networks such as Bitcoin Cash, Kusama, EOS, and Algorand. Users can still move tokens across their wallets, but Tethers will no longer issue or redeem USDTs on these platforms.
The shift came after weeks of community pushbacks to the company’s original plans.
“Unsupported” classification
In June, Tether outlined the transition that began on September 1, 2025, with all USDTs on the affected blockchain frozen and excluded from redemption.
The move was framed as a way to streamline operations by blocking support for networks that account for negligible shares of Stablecoin activity. Under that plan, the token remained visible in the chain, but was effectively left behind without movement or red pathways.
Following sustained criticism from developers and users of small ecosystems like EO and Algorand, Tether has retreated from a fierce freeze. The company said the revised approach was “coordinated with a broader strategy,” avoiding reputational damage.
A compromise allows tethers to shave off the low capacity chain without causing a rebound from users who were trapped from their assets.
Pivoting towards Bitcoin
The announcement comes one day after Tether disclosed its plans to issue native USDT to Bitcoin using the RGB protocol.
Unlike wrapped tokens that rely on Custodial Bridges, RGB integrates directly with Bitcoin scripting and client-side validation, with USDT becoming part of the Bitcoin Ecosystem security model.
USDT is most concentrated in Ethereum and Tron, each with over $80 billion in circulation, in addition to the low footprint of Solana and several other networks.
The decision to drop support for legacy chains shows that it will tighten resources on platforms with higher adoption, setting new ground in Bitcoin.
