Tether Halts New USDT Issuance on EOS and Algorand Blockchain Platforms
Summary:
Tether, a leading stablecoin firm, is halting the issuance of new USDT, its primary dollar-backed stablecoin, on the EOS and Algorand blockchain platforms starting from June 24. This decision aligns with efforts to maintain balance in its ecosystem. Both EOS and Algorand represent less than 0.1% of the total USDT supply. The firm aims to ensure a smooth transition with minimum disruption, and re-emphasized the importance of retaining seamless user experience. Tether will continue to redeem USDT on EOS and Algorand for the next twelve months. The first Tether tokens were launched on the Bitcoin blockchain in 2014.
Tether, a leading stablecoin firm, has opted to stop introducing new USDT, its key dollar-backed stablecoin on multiple blockchains. Beginning June 24, the company will cease USDT production on the EOS and Algorand blockchain platforms, as stated officially on Tether's blog. Following this cessation, USDT redemption on EOS and Algorand will persist as normal for an upcoming year and any additional changes will be assessed and announced thereafter.
The decision to halt USDT production on EOS and Algorand is in line with Tether's move to balance out its stablecoin ecosystem.“We scrutinize the security infrastructure of the network to guarantee safety, usability, and sustainability of the selected blockchain,” Tether clarified, emphasizing the importance of allocating resources where security and efficiency can be boosted and innovation can be encouraged.
Tether affirmed its commitment to ensuring a smooth transition with minimal interference, and retaining user experience seamlessness. EOS and Algorand represent less than 0.1% of the entire USDT supply and are two of 17 blockchain networks including Ethereum, Tron, Solana, The Open Network (TON), among others that facilitate Tether transactions.
As of June 22, total EOS-based Tether in circulation came to $75.5 million, equivalent to roughly 0.06% of the overall existing USDT worth close to $113 billion. Meanwhile, Algorand-based Ether (ETH) represents an even smaller proportion of total USDT circulation at approximately $17 million worth or about 0.01% of total existing USDT.
It's worth noting that Tether introduced USDT on the Algorand blockchain in 2020, shortly after launching USDT on the EOS blockchain in May 2019. EOS and Algorand, however, are not the only blockchain platforms that Tether has chosen to discontinue for new USDT issuance.
In August 2023, Tether discontinued USDT minting on three blockchains, including Kusama, Bitcoin Cash SLP (Simple Ledger Protocol), and the original blockchain for USDT, the Omni Layer Protocol. The initial Tether tokens were issued on the Bitcoin blockchain via Omni in October 2014.
While Tether has discontinued EOS and Algorand, it has actively integrated additional blockchain networks such as TON. By April 2024, Tether had produced about $500 million of TON-based stablecoins, equivalent to 0.44% of the total circulating supply.
Published At
6/24/2024 3:55:20 PM
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