Tether (USDT) Issuer to Stop Minting Its Stablecoin on Algorand and EOS Blockchains

Tether, the issuer of the world's largest stablecoin, has announced it will stop minting its dollar-linked USDT token on the Algorand and EOS blockchains.

Tether, the company behind the world's largest stablecoin, announced on Monday that it will stop minting its dollar-linked USDT token on the Algorand and EOS blockchains.

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

From Monday , Tether will stop minting USDT on the new blockchain. However, the company will continue to redeem the stablecoin from these blockchains over 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 on major blockchains Currently, the total amount of USDT circulating on the market is approximately US$113 billion, distributed on 16 different blockchains.

Despite being so widely distributed, the majority of USDT is concentrated on two blockchains: $59 billion on Tron and $52 billion on Ethereum.

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In comparison, there is only $85 million in USDT on Algorand, which is only 0.08% of the total supply, and EOS has only $17 million, or 0.015% of the total supply.

Impact on Algorand and EOS

The decision to stop minting USDT on Algorand and EOS reflects the relatively low usage of these two platforms. For users and developers on these blockchains, the ability to redeem USDT will remain unchanged for the next year, creating a transition period.

This change may prompt people to move to more popular platforms like Tron and Ethereum, which have much higher USDT usage.

Tether’s move to stop minting USDT on Algorand and EOS highlights its strategic focus to support blockchains with wider community participation and higher usage.

By focusing resources on more popular platforms, Tether aims to enhance the stability and maintainability of its stablecoin operations.

News source: https://www.kdj.com/cryptocurrencies-news/articles/tether-usdt-issuer-minting-stablecoin-algorand-eos-blockchains.html

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