Deep Dive
1. Blockchain Support Sunset (12 July 2025)
Overview: Tether is sunsetting USDT support on five legacy blockchains to prioritize scalable, developer-active networks.
The decision follows a strategic review of usage data, with affected chains collectively holding <1% of USDT’s $186B+ supply. Users must migrate funds to Ethereum, Tron, or Solana by 1 September 2025, after which remaining tokens will be frozen.
What this means: This is neutral for USDT as it reduces operational complexity and aligns with liquidity concentration (96% of USDT sits on Ethereum/Tron). Users on deprecated chains face short-term migration friction but gain access to faster, lower-fee networks. (Source)
2. Bitcoin RGB Protocol Integration (28 August 2025)
Overview: USDT will launch natively on Bitcoin via RGB, a layer enabling asset issuance with privacy and scalability.
The integration allows USDT to operate alongside BTC in wallets, leveraging Bitcoin’s security while enabling offline transactions and atomic swaps with Litecoin-based USDT.
What this means: This is bullish for USDT as it taps Bitcoin’s $1.1T+ market cap, offering users censorship-resistant stablecoin utility. It also reduces reliance on Ethereum/Tron for DeFi use cases. (Source)
3. Lightning Network Compatibility (Ongoing)
Overview: Tether is collaborating with Lightning developers to enable instant USDT micropayments.
The integration would allow sub-second transactions at near-zero fees, initially targeting remittances and machine-to-machine payments.
What this means: This is bullish for USDT’s adoption in emerging markets and IoT ecosystems, though scalability challenges remain unproven at mass scale.
Conclusion
Tether is optimizing its infrastructure by deprecating underused chains while deepening integrations with Bitcoin and Layer 2 solutions. These moves signal a focus on scalability, security, and cross-chain interoperability. With USDT now bridging Bitcoin’s ecosystem, will this accelerate Bitcoin’s role beyond a store of value into daily transactions?