What is expected in the development of USDT?
Tether USDt’s roadmap highlights key goals like integrating with new blockchains, following regulations, and growing its ecosystem. Important upcoming events include:
- Plan ₿ Forum (October 2025) – A major conference in Lugano bringing together industry experts.
- US-Compliant Stablecoin Launch (Q4 2025) – A new stablecoin designed to meet US regulations and appeal to institutional investors.
- Stable Blockchain Launch (2025) – A new blockchain built specifically for USDT transactions.
In-Depth Look
1. Fourth Annual Plan ₿ Forum (October 24–25, 2025)
What’s happening: Tether and the city of Lugano will host a conference featuring notable figures like the Assange family and the CEO of Rumble. They’ll discuss Bitcoin adoption and decentralized finance (DeFi). Last year’s event attracted nearly 2,900 attendees.
Why it matters: This event strengthens Tether’s position as a thought leader but probably won’t directly affect USDT’s price unless new partnerships are announced (Tether).
2. US-Compliant Stablecoin Launch (Q4 2025)
What’s happening: Tether plans to introduce a new stablecoin that fully complies with the GENIUS Act, meaning it will be backed 100% by cash or short-term US Treasury securities. This new coin will target institutional investors in the US, while USDT will continue serving other markets.
Why it matters: This is a positive step for gaining trust among large investors and regulators. However, it could reduce USDT’s market share in the US and increase competition with other stablecoins like USDC (AMBCrypto).
3. Stable Blockchain Development (2025)
What’s happening: Tether is creating “Stable,” a blockchain designed specifically for USDT transactions. It will support Ethereum-compatible smart contracts, offer privacy features using zero-knowledge proofs, and allow transaction fees to be paid in USDT.
Why it matters: This new blockchain could make USDT transactions faster and cheaper by reducing dependence on other networks like Tron and Ethereum (Coingeek).
Summary
Tether’s plans focus on adapting to regulations with a new US-compliant stablecoin, innovating with a dedicated blockchain, and engaging the community through the Plan ₿ Forum. These efforts aim to strengthen USDT’s position but come with challenges like regulatory risks and potential market fragmentation. The big question is whether Tether’s shift toward institutional markets will balance out its current focus on more volatile emerging economies.
What updates are there in the USDT code base?
Tether USDt (USDT) is updating its technology to improve its system and increase its use on the Bitcoin network.
- Ending Support for Older Blockchains (August 29, 2025) – USDT will no longer be supported on five less-used blockchains.
- Launching Bitcoin RGB Protocol (August 28, 2025) – USDT will be available on Bitcoin through a new technology called RGB.
- Adding Lightning Network Support (August 14, 2025) – USDT wallets will support fast Bitcoin payments using the Lightning Network.
In Detail
1. Ending Support for Older Blockchains (August 29, 2025)
What’s happening: Tether will stop supporting USDT on Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand blockchains by September 2025. Any USDT left on these networks will be frozen and can no longer be redeemed.
This decision follows a July 2024 announcement to phase out blockchains with very little USDT activity. Together, these chains hold less than $90 million USDT, compared to the total supply of $169 billion. The goal is to focus resources on more popular blockchains like Ethereum, Tron, and newer Layer-2 solutions.
What this means for you: This change won’t affect most USDT users since 99.9% of USDT transactions happen on the main blockchains. However, if you have USDT on any of the affected blockchains, you’ll need to move your funds before the deadline to avoid losing access.
(Source)
2. Launching Bitcoin RGB Protocol (August 28, 2025)
What’s happening: USDT will be issued on Bitcoin using the RGB protocol, a new technology that allows private and scalable asset transfers.
RGB uses “client-side validation,” meaning transaction details stay private and aren’t recorded on the Bitcoin blockchain itself. This combines Bitcoin’s strong security with better privacy features. This update builds on Tether’s earlier integration with Taproot Assets in March 2024.
What this means for you: This is a positive step for USDT because it expands Bitcoin’s capabilities beyond just storing value. It could encourage developers to create privacy-focused financial apps using USDT on Bitcoin.
(Source)
3. Adding Lightning Network Support (August 14, 2025)
What’s happening: Tether’s Wallet Development Kit (WDK) now supports Bitcoin’s Lightning Network through Spark’s infrastructure.
This allows developers to build wallets that can send USDT instantly and with very low fees—sometimes less than one cent. This is especially useful for payment apps and money transfer services.
What this means for you: This is good news for USDT users, especially in countries where small payments are common. The Lightning Network’s speed and low cost could help USDT become more widely used for everyday transactions.
(Source)
Conclusion
Tether is focusing on improving Bitcoin’s scalability and moving away from older blockchains. With USDT now available on Bitcoin’s main layer, the Lightning Network, and the new RGB protocol, this could change how stablecoins like USDT are used in decentralized finance and everyday payments.
What could affect the price of USDT?
Tether USDt (USDT) aims to keep its $1 value stable but faces challenges from new regulations, reserve transparency, and shifts in market liquidity.
- Regulatory Challenges (Negative Impact) – EU bans and U.S. rules could limit USDT’s use.
- Reserve Transparency (Mixed Impact) – Large U.S. Treasury holdings support stability, but incomplete audits and some risky assets raise concerns.
- Market Position Changes (Positive/Negative Impact) – Increasing supply helps crypto trading but also brings more competition.
In-Depth Look
1. Regulatory Challenges (Negative Impact)
What’s happening:
Starting July 2024, new EU rules (MiCA) forced big exchanges like Binance and Kraken to stop offering USDT to users in the European Economic Area. In the U.S., the GENIUS Act passed in July 2025 requires stablecoins to back every coin with 100% cash or U.S. Treasuries. This conflicts with Tether’s current reserves, which include about 12% Bitcoin and gold.
Why it matters:
If Tether doesn’t meet these rules, it could lose access to important markets. The EU delistings affect about 4.5% of global crypto trading volume, reducing demand for USDT. In the U.S., failure to comply might lead to legal trouble or forced changes to Tether’s assets (Chainalysis).
2. Reserve Transparency and Asset Mix (Mixed Impact)
What’s happening:
Tether holds $127 billion in U.S. Treasury securities, making it one of the largest holders worldwide as of Q2 2025. However, 12% of its reserves are in more volatile assets like Bitcoin and gold. Full independent audits are still pending, even though Tether reported $4.9 billion in profits last quarter.
Why it matters:
Having mostly U.S. Treasuries helps reassure users that USDT can be redeemed for cash. But the presence of riskier assets and lack of full audit transparency can cause fear, uncertainty, and doubt (FUD), increasing the chance USDT might lose its $1 peg. A 2024 study by the Bank for International Settlements found stablecoins with less than 90% cash-like reserves are three times more likely to lose their peg (IOSG Weekly Report).
3. Market Position and Liquidity (Positive/Negative Impact)
What’s happening:
As of September 2025, USDT’s market cap reached $169 billion, with $126 billion traded daily. However, its share of the stablecoin market is under pressure from competitors like USDC, which complies with MiCA, and from growing central bank digital currency (CBDC) pilots.
Why it matters:
More USDT in circulation supports crypto trading and adoption, which is positive. But if USDT loses market share, it could mean investors are moving to riskier assets or other stablecoins. A 2025 report from Messari highlights that USDT’s 62% market share depends heavily on Tron network transactions in Asia, where regulations can change quickly (Messari’s State of Stablecoins).
Conclusion
USDT’s ability to maintain its $1 value depends on how well it adapts to new regulations, maintains trust in its reserves, and holds its market position. Its large U.S. Treasury holdings and established presence offer some protection, but regulatory hurdles like MiCA and the GENIUS Act, along with incomplete audits, are key risks. The big question is: Can Tether’s move toward compliant institutional products make up for losing retail users in regulated markets? Keep an eye on upcoming Q3 reserve reports and U.S. regulatory developments.
What are people saying about USDT?
USDT’s strong market presence is stirring up conversations, with regulatory concerns and blockchain changes keeping the discussion active. Here’s what’s trending:
- Concerns over USDT dominance peaking – Traders are watching for a possible rise in alternative cryptocurrencies (altcoins)
- Ending support on some blockchains – Kusama, EOS, and Algorand will no longer support USDT
- Regulatory pressure increasing – New rules from the GENIUS Act may impact stablecoins
- Security issues resurface – A $3 million phishing attack raises questions about how stolen funds should be handled
Deep Dive
1. USDT Market Share Signals Possible Shift in Investments – Bearish for USDT
@Web3Niels points out that while USDT’s total market value is rising, its share of the stablecoin market is dropping (4.29% as of September 2025). This suggests investors might be ready to move money from USDT into Bitcoin and other altcoins.
What this means: When stablecoin market value grows but USDT’s dominance falls, it often signals that investors are preparing to take on more risk by investing in other cryptocurrencies.
2. USDT Support Ending on Kusama Blockchain – Neutral Impact
The Kusama network announced that USDT transactions will be frozen and users should move their USDT to Polkadot via trusted bridges.
What this means: This change won’t significantly affect USDT overall since most USDT activity happens on Ethereum and Tron, which handle 92% of the $174 billion supply. However, it might inconvenience users who rely on Kusama and similar smaller blockchains.
3. Regulatory Concerns Grow Over Stablecoin Backing – Bearish for USDT
A community post highlights that the GENIUS Act could require stablecoins to hold only cash reserves to back their tokens 1:1. Since Tether also holds assets like Bitcoin and gold, this could cause problems.
What this means: If U.S. regulators enforce stricter rules requiring cash-only reserves, USDT could face challenges because part of its backing includes non-cash assets like Bitcoin.
4. $3 Million Phishing Attack Raises Security Questions – Mixed Impact
A recent phishing attack resulted in $3 million worth of USDT being stolen, sparking debate about whether Tether should freeze stolen funds.
What this means: This incident highlights the risks of managing your own crypto wallets (self-custody) but also increases interest in more regulated stablecoins like USDC, which may offer stronger protections.
Conclusion
The outlook for USDT is mixed. It remains the dominant stablecoin with a $169 billion market cap and high liquidity (24-hour trading volume of $126 billion), but it faces growing regulatory scrutiny and technical challenges. Keep an eye on the progress of the SEC’s stablecoin regulations and USDT’s market share—especially if it falls below 4.15%—which could signal a shift of investment into altcoins. The question remains: does Tether need to rethink its treasury management to stay compliant in this evolving landscape?
What is the latest news about USDT?
Tether is managing regulatory challenges while expanding its technical capabilities. Here’s the latest update:
- Ending Support on Five Blockchains (September 1, 2025) – Tether will stop supporting USDT on five networks, freezing over $82 million in assets.
- Bitcoin Integration (August 28, 2025) – USDT can now be sent directly using Bitcoin’s RGB protocol.
- GENIUS Act Pressure (July 25, 2025) – New U.S. stablecoin rules may impact Tether’s reserve holdings.
In-Depth Look
1. Ending Support on Five Blockchains (September 1, 2025)
What happened: Tether has stopped allowing USDT redemptions on Algorand, Bitcoin Cash SLP, EOS, Kusama, and Omni Layer. This move freezes about $82.9 million worth of USDT on these networks. Usage on these blockchains has been very low for some time—for example, Kusama has less than $250,000 in active USDT compared to $81 billion on Tron.
What this means: This change is mostly neutral for USDT overall. It simplifies Tether’s operations by focusing on the most popular blockchains like Ethereum and Tron, which hold 97% of USDT liquidity. However, some smaller user groups on the discontinued chains may be affected. (The Block)
2. Bitcoin Integration (August 28, 2025)
What happened: Tether now supports USDT transfers using Bitcoin’s RGB protocol. This allows USDT transactions to benefit from Bitcoin’s strong security without needing extra layers or intermediaries.
What this means: This is a positive step for USDT adoption, especially among users who prefer Bitcoin’s network. However, wider use depends on how quickly wallets and other tools adopt the RGB protocol. (CryptoSavingExp)
3. GENIUS Act Pressure (July 25, 2025)
What happened: The U.S. GENIUS Act requires stablecoins to be fully backed by cash or short-term Treasury securities. Tether’s reserves currently include about $4.9 billion in Bitcoin and gold, which may not meet these requirements if enforcement becomes stricter.
What this means: This creates regulatory risk for Tether. If it can’t comply, USDT’s availability in the U.S. could be limited, potentially benefiting competitors like USDC. Still, Tether’s large Treasury holdings of $127 billion provide some financial cushion. (CryptoFrontNews)
Conclusion
Tether is balancing technical improvements, like integrating with Bitcoin, with adapting to new regulations. Ending support for less-used blockchains shows a focus on efficiency. With $169 billion in circulation and controlling 74.5% of the stablecoin market, Tether’s future depends on how well it navigates U.S. and EU rules without losing its decentralized strengths. The key question remains: will changes required by the GENIUS Act reduce Tether’s liquidity advantage?