Tether Suspends USDT Issuance on EOS and Algorand Blockchains

Tether Puts a Stop to USDT Issuance on EOS and Algorand Blockchains


By Hassan Shittu
Last updated:
June 24, 2024 19:00 EDT
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1 min read


In an announcement made on June 24, Tether declared that it would no longer be supporting the EOS and Algorand blockchain implementations of USDT.
In a blog post, Tether emphasized that this decision was in line with the company’s commitment to maintaining a strong blockchain ecosystem, while directing resources towards platforms that best serve the needs of the community.
Tether’s Plan to Optimize its Blockchain Ecosystem
Following the halt in new USDT minting on these platforms, Tether will continue to redeem USDT on EOS and Algorand for the next 12 months. The company noted that further changes may be evaluated and announced around that time.
According to Tether, this move is a step towards optimizing its blockchain ecosystem by prioritizing community-driven support and resource allocation. The announcement stated, “Community interest plays a pivotal role when we bring USDT to specific blockchains.”
The company aims to allocate resources to enhance security and efficiency while supporting innovation across the crypto ecosystem. Tether also stated that it will continue to support other protocols and chains that the community finds valuable, encouraging the expansion of USDT use cases across various platforms.
USDT Moves In and Out of Different Blockchains Due to Low Adoption
Tether’s USDT was launched on the Algorand blockchain in 2020, but has seen minimal adoption, with only $17 million USDT held by 39,000 holders, out of a reserve allocation of $18 trillion.
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, with a market cap of $112 billion.
As of June 22, 2024, EOS-based USDT in circulation amounts to $75.5 million, approximately 0.06% of all circulating USDT. Algorand-based USDT holds an even smaller share, with around $17 million, or about 0.01% of the total supply. These low adoption rates have prompted Tether to cease issuing USDT on these blockchains.
This decision comes after Tether’s August 2023 move to stop minting USDT on three other blockchains: Kusama, Bitcoin Cash’s Simple Ledger Protocol (SLP), and the original USDT blockchain, the Omni Layer Protocol. Tether’s first tokens were issued on Bitcoin through the Omni Layer Protocol in October 2014.
Despite withdrawing from Algorand and EOS, Tether is 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, representing 0.44% of the total circulating supply of USDT.