Tether halts USDT minting on Algorand and EOS

Tether, the world’s largest stablecoin issuer, has announced that it will stop issuing its dollar-pegged USDT tokens on the Algorand and EOS blockchains.

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The decision is part of a strategic shift to focus on community-driven blockchain support, aiming to balance maintainability, usability, and community interest.

Focus on strategic transition

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Starting Monday, Tether will stop issuing new USDT on Algorand and EOS, although the company will continue to redeem stablecoins on these blockchains for the next 12 months. The move signals Tether’s intention to streamline its operations and prioritize platforms with higher usage and community engagement.

Distribution of USDT across blockchains Currently, there is approximately $113 billion USDT in circulation, distributed across 16 different blockchains.

Despite this wide distribution, the majority of USDT is concentrated on two blockchains: Tron at $59 billion and Ethereum at $52 billion.

In contrast, Algorand holds just $85 million in USDT, making up just 0.08% of the total supply, and EOS holds just $17 million, making up just 0.015% of the total supply.

Impact on Algorand and EOS

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The decision to stop issuance of USDT on Algorand and EOS reflects the relatively low usage of these platforms compared to other platforms. For users and developers of these blockchains, the ability to redeem USDT will remain unaffected for the next year, allowing for a transition period.

This change is likely to encourage migration of USDT to more popular platforms such as Tron and Ethereum, which have significantly higher usage.

Tether’s move to halt USDT issuance on Algorand and EOS underscores its strategic focus on blockchains with greater community support and usage.

By focusing resources on more popular platforms, Tether aims to make its stablecoin operations more stable and maintainable.

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