Stablecoin leader Tether has announced its intention to phase out USDT support on Algorand and EOS over the next 12 months, citing a shift towards community-centric networks.
In an official statement on Monday, the company explained its decision as part of a strategy to prioritize maintainability, usage, and community engagement. “Our objective is to allocate resources where they can most effectively enhance security and efficiency, while still fostering innovation throughout the cryptocurrency industry,” the statement read.
Tether has reduced its blockchain support to 12 networks, with plans to discontinue USDT support on Algorand and EOS by next year. The stablecoin issuer stated that users can still redeem their USDT holdings on these platforms until then, while reserving the right to announce further changes.
Following this announcement, the native tokens of Algorand (ALGO) and EOS (EOS) experienced slight declines, accompanied by significant increases in their daily trading volumes, as reported by CoinMarketCap data.
As the largest U.S. dollar-pegged stablecoin in the market, Tether’s decision to withdraw from Algorand and EOS reduces its supported networks from 14 to 12. Currently, USDT remains available on Avalanche, Celo, Cosmos, Ethereum, Liquid Network, Near, Polkadot, Solana, Tezos, The Open Network (TON), and Tron, pending any future adjustments.
This move marks the first time since 2023 that Tether has discontinued its stablecoin on a decentralized network. Last August, the company ceased USDT operations on Bitcoin, Bitcoin Cash, and Kusama.
