Tether has announced that it will no longer support USDT on various blockchains starting September 1, 2025. Why is this significant? It’s because if you don’t act, any USDT on those blockchains will be permanently frozen.
Why is Tether stopping support for USDT on certain blockchains?
There are two main reasons. The first being that not a lot of users are using USDT on those blockchains. The second is that it costs Tether money to maintain nodes for those low-volume transactions. Tether wants to focus on blockchains where more people are using their product, so they will support Ethereum, Tron, and Solana as they provide more scalability and a larger user base.
How can you migrate your USDT to supported networks?
To migrate, you have a few options. The first and easiest way is to send your USDT to an exchange like Binance or Coinbase. They usually convert your USDT to supported networks like Ethereum or Tron without any hassle. Just make sure you check beforehand.
Another way would be Tether’s migration tool. It’s pretty user-friendly and you can access it through a web interface or command line. However, you will need to verify you own the USDT address on the deprecated blockchain and provide an address on a supported blockchain.
Then there are cross-chain bridges, these are for the tech-savvy among us. You can use compatible wallets, like MetaMask, to transfer USDT over these bridges. Again, you need to check transaction fees and processing times to make sure you don’t end up trapping your funds mid-transfer.
Lastly, Tether does allow direct redemption through its own platform, but they may not allow for non-U.S. residents to use.
What implications does this change have for crypto payroll?
This migration has huge implications for crypto payroll. It will allow for cheaper and faster transactions as everything consolidates to Ethereum and Tron. This is good for companies who need timely payments and have operations across borders in Asia.
In regions with volatile local currencies, people are starting to use USDT for payroll. The migration will make USDT a more reliable option for crypto payroll. Companies can hire and retain talent by providing crypto-based salaries.
However, there are concerns about centralization. Tether freezing tokens could raise compliance issues, which is a plus for regulatory compliance but a minus for Decentralized Finance. Companies integrating USDT payroll have to navigate these challenges carefully.
On the flip side, Tether’s migration could lead to new fintech services designed specifically for crypto payroll.
How does this affect European SMEs?
For European SMEs who are using stablecoins for cross-border payments, the implications are a bit messier.
If Tether is delisted from European exchanges due to the EU's MiCA regulatory framework, you may not be able to access USDT, which will disrupt your payment flows.
You might see increased regulatory scrutiny on payment gateways. If they are using Tether, they will have to adhere to stricter compliance measures or switch to compliant stablecoins.
Lastly, you may need to migrate to stablecoins that are compliant with MiCA, or at least those that are backed by more compliant issuers.
What are some alternatives for those affected?
Tether does provide migration tools for you to transition your USDT to supported blockchains.
You can also use exchanges that will convert your USDT to supported networks.
Then, there are other stablecoins that comply with regulations, like USDC or DAI, that you can consider transitioning to.
The landscape is shifting, so staying informed is your best bet to make the right decisions for you.
