Tether, the leading stablecoin issuer, will discontinue USDT issuance and redemption on five blockchains by September 2025. This decision, driven by community feedback regarding low platform usage, prioritizes a shift to Bitcoin operations via the RGB protocol for greater scalability and demand. USDT support will be discontinued on Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand, impacting liquidity dynamics on affected platforms. Tether CEO Paolo Ardoino emphasizes the focus will move towards Ethereum and Tron, while also leveraging Bitcoin’s Layer-2 network through the RGB protocol. This transition is expected to bring both cost reductions for Tether due to reduced operational expenses and enhanced regulatory clarity by focusing on high-demand, scalable networks. The immediate effects include potential liquidity shifts and strategic adjustments for platforms dependent on USDT transactions. Users might experience decreased transaction capacity and a limited range of platforms for USDT operations. Financial implications involve cost savings from reduced active chains while regulatory clarity is enhanced through demand-driven networks. Tether anticipates gradual migration towards Ethereum and Tron, with historical precedent suggesting past removal of USDT support led to diminished liquidity and decreased arbitrage opportunities. This strategic shift may also unlock new possibilities in stablecoin development, fostering technological expansion within the industry. Tether will not freeze USDT smart contracts on these affected blockchains; users can still transfer funds, but issuance and redemption will be discontinued as part of a strategy focused on scalable and active networks.