Tether suspends issuance of new USDT stablecoin tokens on the Eos Network and Algorand blockchains.
The issuance of new USDT tokens on numerous additional blockchains has been suspended as Tether, the stablecoin giant, continues to convert its flagship United States dollar-pegged stablecoin USDT.
On Monday, June 24, the company announced on its blog that it would cease minting Tether USDT on the Eos and Algorand blockchains.
After the termination, Tether will continue to redeem USDT on Eos and Algorand in the same manner for the next 12 months. The announcement indicates that additional modifications may be assessed and communicated during that period.
Tether maintains that removing Eos and Algorand-based USDT minting is consistent with the company’s commitment to restoring equilibrium within the Tether ecosystem.
To guarantee the safety, usability, and sustainability of the selected blockchain, Tether meticulously assesses the network’s security architecture. Its ultimate objective is to “allocate resources to maximize security and efficiency” while encouraging innovation. The announcement included the following:
“We assure our community that this transition will be executed meticulously and with minimal disruption. Our top priority remains delivering a seamless user experience, and we are committed to facilitating a hassle-free transition.”
Algorand, Eos account for less than 0.1% of USDT supply
Eos and Algorand are merely two of the 17 blockchains that facilitate Tether transactions on various blockchain networks, such as Ethereum, Tron, Solana, The Open Network (TON), and others.
According to data from Tether transparency, the total Eos-based Tether in circulation as of June 22 was $75.5 million, approximately 0.06% of the total circulating USDT worth nearly $113 billion.
Ether, domiciled in Algorand, has an even smaller share of the total USDT circulation, with approximately $17 million in USDT supply, or approximately 0.01% of the total circulating USDT.
In 2020, Tether introduced USDT on the Algorand blockchain, following its successful implementation on the Eos blockchain in May 2019.
Tether has chosen to forgo Eos, Algorand, and other blockchains to issue a new USDT.
Tether ceased minting USDT on three blockchains in August 2023: Kusama, Bitcoin Cash SLP (Simple Ledger Protocol), and the Omni Layer Protocol, the original USDT blockchain.
Omni issued the initial Tether tokens on the Bitcoin blockchain in October 2014.
Tether has been actively integrating new blockchain networks, such as TON while removing Eos and Algorand. Tether has produced approximately $500 million in stablecoins based on TON since the launch of USDT in April 2024, which accounts for 0.44% of the total circulating supply, according to the company.
