Tether Unfreezes USDT on Legacy Chains, Labels Them as 'Unsupported'
In a recent announcement, Tether, the issuer of the popular stablecoin USDT, has decided to reverse its decision to freeze operations on certain networks such as EOS and Algorand, following pushback from developers and users on these networks.
This move comes after Tether's announcement of its plans to launch a native USDT on Bitcoin via the RGB protocol. This strategic step can be seen as a bet on Bitcoin's foundational security, further solidifying its position in the cryptocurrency market.
Currently, Tether distributes USDT across multiple platforms including Ethereum, Tron, Solana, Avalanche, Celo, and Cosmos, each with over $80 billion in circulation. However, the company has cancelled its planned cooling of USDT on legacy blockchains like Omni, BCH SLP, Kusama, EOS, and Algorand due to low usage and demand on these networks.
The RGB protocol, which Tether will use to introduce USDT on Bitcoin, leverages Bitcoin's own scripting and client-side validation. This integration makes USDT an intrinsic part of the Bitcoin ecosystem, thereby avoiding the counterparty risk associated with wrapped assets on bridges.
Meanwhile, the Ethereum Foundation has paused open grant applications for its Ecosystem Support Program.
The revised approach by Tether aligns with its broader strategy and is a pragmatic compromise. This allows the firm to shed the operational burden of supporting low-traffic chains, while avoiding the public relations nightmare of effectively destroying user assets.
