What is expected in the development of USDT?
Tether USDt’s roadmap highlights key moves to strengthen its platform and expand its reach:
- Phasing Out Older Blockchains (September 1, 2025) – Ending USDT support on five less-used blockchains.
- Bitcoin RGB Integration (August 28, 2025) – Launching private, secure USDT transfers on Bitcoin’s network.
- USA₮ Stablecoin Launch (Q4 2025) – Introducing a U.S.-regulated stablecoin backed by the dollar.
- Plan ₿ Forum (October 24–25, 2025) – An event showcasing new decentralized technologies and partnerships.
In-Depth Look
1. Phasing Out Older Blockchains (September 1, 2025)
What’s happening: Tether will stop supporting USDT transactions and freeze tokens on Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand blockchains. These chains hold less than 0.1% of the total $173 billion USDT supply, and usage has been flat since 2023 (Tether announcement). Users will need to move their USDT to Ethereum, Tron, or Solana networks.
Why it matters:
- Positive: Simplifies Tether’s operations, lowers security risks, and focuses resources on more active blockchains.
- Challenges: Users on these older chains may face some inconvenience, and liquidity could be temporarily split.
2. Bitcoin RGB Integration (August 28, 2025)
What’s happening: USDT will be available on RGB, a new protocol built on top of Bitcoin that allows private and scalable asset transfers. While transactions settle on Bitcoin’s blockchain, they happen off-chain, which means lower fees and better privacy (Tether announcement).
Why it matters:
- Positive: Adds new uses for Bitcoin beyond just storing value, opening doors for decentralized finance (DeFi) and payments.
- Considerations: Success depends on how widely RGB is adopted and how it competes with other Bitcoin solutions like the Lightning Network and Ethereum’s Layer 2 options.
3. USA₮ Stablecoin Launch (Q4 2025)
What’s happening: Tether will launch USA₮, a stablecoin regulated in the U.S. and compliant with the GENIUS Act. It’s designed for institutional payments and bank-to-bank transfers, fully backed by U.S. Treasury securities (Bloomberg).
Why it matters:
- Positive: Marks Tether’s return to the U.S. market, challenging the current leader, Circle’s USDC.
- Risks: Regulatory oversight will be strict, and full transparency about reserves will be essential to build trust.
4. Plan ₿ Forum (October 24–25, 2025)
What’s happening: Tether’s annual conference in Lugano will focus on decentralized infrastructure, artificial intelligence, and Bitcoin adoption. Previous events have introduced partnerships with companies like Holepunch (peer-to-peer technology) and Keet (encrypted communications).
Why it matters:
- Positive: Could reveal new wallet technology (WDK V2) or AI projects.
- Neutral: Mostly high-level updates; practical details may come later.
Conclusion
Tether is focusing on streamlining its platform by retiring older blockchains, integrating with Bitcoin through RGB, and launching a U.S.-regulated stablecoin. Keep an eye on the USA₮ launch in Q4 2025 and how Bitcoin-based DeFi grows after RGB goes live. The big question: Can Tether’s shift toward institutional markets balance its current reliance on emerging markets?
What updates are there in the USDT code base?
Tether USDt’s recent updates focus on integrating with Bitcoin, improving infrastructure, and providing better tools for developers.
- Bitcoin Integration (August 28, 2025) – USDT can now be sent directly on Bitcoin using Taproot Assets and the Lightning Network.
- Wallet Development Kit (June 10, 2025) – A new peer-to-peer toolkit to make building wallets easier and more efficient.
- Legacy Blockchain Sunset (September 1, 2025) – USDT support ended on Algorand, EOS, and three other older blockchains.
Deep Dive
1. Bitcoin Integration (August 28, 2025)
Overview: Tether has connected USDT with Bitcoin’s Taproot Assets protocol, allowing users to send USDT directly to Bitcoin wallets through the Lightning Network.
This means users get the strong security of Bitcoin while enjoying fast and very low-cost transactions—less than one cent per transfer. The update involved technical changes to work smoothly with Bitcoin’s unique system for tracking coins (called the UTXO model) and the Lightning Network’s payment channels.
What this means: This is a positive move for USDT because it opens up new ways to use the stablecoin within Bitcoin’s $1.1 trillion ecosystem. It’s especially useful for small payments in areas like AI apps and gaming. Users get Bitcoin-level security without losing the flexibility and liquidity of USDT. (Source)
2. Wallet Development Kit (June 10, 2025)
Overview: Tether introduced a Wallet Development Kit (WDK) that uses peer-to-peer technology to help developers build wallets more easily. This kit supports syncing wallet data and sending transactions without relying heavily on centralized servers.
The WDK also supports offline transaction signing, which enhances security. A second version is planned for late 2025, aiming to enable easy swaps between different blockchains.
What this means: This update doesn’t directly affect USDT’s value but is good news for adoption. Developers can build safer and more flexible wallets, which could increase USDT’s use in decentralized finance (DeFi) and institutional applications. (Source)
3. Legacy Blockchain Sunset (September 1, 2025)
Overview: Tether stopped supporting USDT on several older blockchains, including Algorand, Bitcoin Cash SLP, EOS, Kusama, and Omni Layer. About $171 million worth of USDT on these chains was frozen.
This decision came after years of low usage on these networks (for example, less than $250,000 USDT was active on Kusama). The update involved removing chain-specific smart contracts and focusing resources on Ethereum and Tron, which now hold the majority of USDT.
What this means: This change is neutral in the long run. It reduces fragmentation by concentrating USDT liquidity on the most active blockchains—Ethereum alone holds 45% of USDT supply. However, users with USDT on the discontinued chains need to move their assets to supported networks. (Source)
Conclusion
Tether’s recent updates focus on integrating with Bitcoin and improving overall system efficiency, while cleaning up older, less-used blockchains. With 98% of USDT now on Ethereum and Tron, it will be interesting to see how Bitcoin Layer 2 adoption affects USDT’s position as a leading stablecoin in the last quarter of 2025.
What could affect the price of USDT?
Tether USDt (USDT) faces some challenges in keeping its $1 value steady due to new regulations and questions about its reserves.
- GENIUS Act Compliance – U.S. rules now require stablecoins to have full cash reserves, putting Tether’s transparency to the test.
- Reserve Liquidity Risk – About 12% of Tether’s reserves are in Bitcoin and gold, which might make it harder to redeem quickly.
- Market Share Pressure – Competitors like USDC and bank-backed stablecoins are cutting into USDT’s 70% market dominance.
In-Depth Look
1. Regulatory Changes (Mixed Effects)
The U.S. passed the GENIUS Act in July 2025, which requires stablecoins like USDT to back every coin with 100% cash or U.S. Treasury bonds and to have regular audits. Tether plans to meet these rules by 2026 but has a three-year transition period (Tether). In Europe, similar rules under MiCA have already led to Tether being removed from platforms like Binance and Kraken.
What this means: Following these rules could make USDT more trustworthy for big investors. But selling off Bitcoin and gold reserves (which make up 12% of Tether’s holdings) or delays in audits could cause short-term drops below $1, like what happened with USDC in 2023.
2. Reserve Makeup & Transparency (Potential Risk)
Tether holds about $127 billion in U.S. Treasury bonds but also has $8.9 billion in Bitcoin and $8 billion in gold. Instead of full audits, Tether provides quarterly attestations, and it still faces questions after a $18.5 million fine in 2021 for misleading investors (Bloomberg).
What this means: If there’s a sudden rush to redeem USDT—maybe due to legal issues or a partner failing—these less liquid assets could make it hard to meet redemptions quickly. For example, during the banking crisis in March 2023, USDT briefly dropped to $0.995 even though it wasn’t directly affected, showing how sensitive it is to market panic.
3. Competition from Other Stablecoins (Growing Challenge)
USDT’s market share dropped to about 59.5% in August 2025 as USDC (which undergoes monthly audits) and JPMorgan’s JPM Coin gained popularity. In Europe, USDC, which meets MiCA rules, now leads the market, while Tether’s removal from exchanges there has reduced its liquidity (CoinDesk).
What this means: Losing market share weakens USDT’s network effect, making it more vulnerable to sudden liquidity problems. Although USDT’s daily trading volume ($145.5 billion) is still three times that of USDC, a shift in market preference could disrupt the price stability mechanisms that keep USDT pegged to $1.
Conclusion
USDT’s ability to maintain its $1 value depends on how well it adapts to new regulations, manages its reserve assets, and holds onto market share. Its large market cap ($173 billion) and heavy investment in U.S. Treasuries offer some short-term strength, but ongoing scrutiny of its Bitcoin and gold holdings or losing users in Europe and retail markets could challenge its stability.
Watch: Will Tether’s new U.S.-compliant stablecoin launching in 2026 help recover lost ground or speed up market fragmentation?
What are people saying about USDT?
Tether USDt (USDT) is making headlines with increased activity, but questions remain about its long-term strength and market position. Here’s the latest:
- $8 billion USDT minted in 25 days – a surge in liquidity that may be driving Bitcoin’s recent rally 🚀
- Regulatory pressure grows – EU exchanges delisting USDT, and new U.S. regulations under the Genius Act 🚨
- Legacy blockchains winding down – EOS and Algorand users must move USDT before a September 1 freeze ⏳
- Market dominance shifts – USDT’s dominance shows signs of weakening, hinting at a move toward altcoins 📉
- Strong reserves – $127 billion in U.S. Treasuries back USDT, supporting a record $4.9 billion profit in Q2 💪
In-Depth Look
1. $8 Billion USDT Minted, Boosting Bitcoin Rally 🚀
According to @johnmorganFL, Tether minted $8 billion USDT over 25 days—$6 billion on Ethereum and $2 billion on Tron. This coincided with Bitcoin’s 16.5% price jump to a new all-time high of $123,780. This fresh USDT supply could be fueling buying power in the market.
What this means: More USDT in circulation often signals increased market liquidity, which can lead to price rallies. However, some worry this might create artificial demand rather than organic growth.
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2. EU Regulations Force USDT Delistings 🌍
@kucoincom reports that major exchanges like Binance and Kraken have stopped USDT trading for users in the European Economic Area (EEA) to comply with the EU’s MiCA regulations. Tether has chosen not to comply with these rules, calling them “restrictive,” and is instead focusing on launching a U.S.-focused stablecoin.
What this means: This is a short-term setback for USDT’s presence in Europe but may have little impact long-term as Tether shifts toward serving institutional clients.
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3. Deadline Approaches for USDT on Older Blockchains ⏳
The Kusama network warns users to move their USDT off EOS, Algorand, and Kusama blockchains before September 1, or risk having their assets frozen. Tron is becoming the main network for USDT, now holding $81.7 billion of the supply.
What this means: This change doesn’t affect USDT overall but signals a move away from less active blockchains toward faster, more scalable ones like Tron.
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4. USDT Dominance Shows Signs of Weakening 📊
Crypto analyst @Web3Niels points out that USDT’s market dominance (USDT.D) has formed a “double-top” pattern at 4.8%. If it falls below the key 4% support level, it could trigger billions of dollars flowing into alternative cryptocurrencies (altcoins).
What this means: A drop in USDT dominance often means traders are moving from stablecoins into riskier assets, signaling a potential “altseason” where altcoins gain value.
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5. Strong Treasury Holdings Support USDT Stability 💼
Tether’s official account, @Tether_to, revealed that in Q2, USDT generated $4.9 billion in profit backed by $127 billion in U.S. Treasury securities—more than Germany’s national debt. Excess reserves stand at $5.47 billion.
What this means: This large reserve backing helps maintain USDT’s price stability. However, critics note that 68% of these reserves are in non-cash assets, which may carry some risk.
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Conclusion
The outlook on USDT is mixed. On the positive side, its growing liquidity and strong Treasury-backed reserves support its role as a leading stablecoin. On the downside, regulatory challenges in Europe and the phaseout of older blockchains expose vulnerabilities. Keep an eye on the USDT.D chart—if it falls below 4%, it could signal a shift of funds into altcoins, testing Tether’s position as the crypto market’s main liquidity provider.
What is the latest news about USDT?
Tether is making moves to meet new regulations and grow its business, but it’s also under scrutiny for being used in illegal activities. Here’s the latest update:
- GENIUS Act Compliance (September 23, 2025) – Tether will follow U.S. stablecoin rules for both USDT and USAT.
- $500 Billion Valuation Plan (September 24, 2025) – Tether is looking to raise funds privately to strengthen its market position.
- Illicit Activity Alert in South Korea (September 22, 2025) – USDT was linked to a $42 million illegal money transfer case.
In-Depth Look
1. GENIUS Act Compliance (September 23, 2025)
What happened: Tether announced it will comply with the U.S. GENIUS Act, which sets rules for stablecoins like USDT and USAT. Bo Hines, who leads Tether’s U.S. operations, said they plan to use the Act’s reciprocity feature to keep USDT available in regulated markets.
Why it matters: This move could help Tether work more closely with big financial institutions. It also means Tether will need to be very transparent about its reserves (the money backing USDT). While this doesn’t change how USDT is used day-to-day, it could build more trust over time if Tether meets U.S. audit standards. (MEXC News)
2. $500 Billion Valuation Private Placement (September 24, 2025)
What happened: Tether is reportedly aiming for a $500 billion company valuation by raising money through a private funding round. This would help them expand their market leadership and improve their infrastructure.
Why it matters: A higher valuation might attract big investors, but it also raises questions about how this could affect existing shareholders and how Tether manages its reserves. In the short term, this is neutral news; the success depends on how well Tether executes this plan. (Bitget)
3. South Korea’s USDT Crime Crackdown (September 22, 2025)
What happened: South Korean authorities connected USDT to a $42 million illegal money transfer scheme between Russia and Korea. This was part of a record number of 36,684 suspicious crypto transactions flagged in 2025.
Why it matters: This is negative news for Tether’s reputation and could lead to stricter regulations worldwide. However, Tether’s work with forensic companies like Crystal Intelligence might help reduce long-term damage to its image. (Bitget)
Conclusion
Tether is carefully balancing following new U.S. regulations (GENIUS Act) and growing its business (aiming for a $500 billion valuation) while dealing with concerns about illegal use. The key question is whether the GENIUS Act’s reciprocity rules will help USDT stay dominant in the U.S. market or if regional crackdowns will limit its availability and liquidity.