Tether Inc, the issuer of the largest stablecoin by volume, USDT, has announced that it will cease issuing the stablecoin on the EOS and Algorand blockchain. This development is part of a broader strategy taken by the company to maintain a robust and innovative blockchain ecosystem.
Tether keeps to this standard by continually assessing the current transport layers, in a bid to strike a balance between maintainability, usage, and community interest. After checking these factors, the crypto firm has resolved to discontinue its services on the aforementioned blockchain effective immediately.
Read Also: David Schwartz Weighs in on Tether’s Influence on Financial Markets
EOS and Algorand Did Not Meet Tether Security Assessment
According to the released statement, Tether considers the interest of the crypto community, stressing that it plays an important role in choosing specific blockchains for USDT. Tether evaluates factors like the network’s security architecture to guarantee the safety, usability, and sustainability of the blockchain before integration. However, after careful assessment, the company has decided to cease support for EOS and Algorand blockchains.
Advertisement
Per the statement, Tether will stop minting USDT on the aforementioned blockchain effective June 24. Additionally, Tether has assured the public that it will continue redeeming USDT on EOS and Algorand till June 2025.
“Tether will continue to redeem USD₮ on EOS and Algorand as usual for the next 12 months. Further changes may be evaluated and announced around that time,” the statement reads.
The company promised to continue supporting protocols and blockchains that the community finds useful. USDT users who use the affected platforms are assured of a smooth transition with minimal disruptions. Tether maintains that its goal is to deliver a good user experience, emphasizing its commitment to facilitating a seamless transition.
With a reserve amount of $18 trillion, there is only $17 million USDT among 39,000 investors in Algorand, based on on-chain data. There are 32,000 holders of $85 million USDT coins on EOS. These figures are incredibly low for the $112 billion market cap token when compared to other chains.
Following this removal, USDT is now available on the following blockchains; Avalanche, Celo, Kava (Cosmos), Ethereum, Liquid Network, NEAR, Polkadot, Solana, Tezos, TON, and Tron. Notably, Ethereum and Tron hold the major supply of the stablecoin.
Read Also: Over 85 Million XRP Moved To and From CEXs Amid Price Drop, What is Happening?
