Amid the current tightening global oversight and a growing appetite for transparency in the crypto world, Tether ’s position as the leading stablecoin issuer in the sector is at risk from new and rising stablecoins. Fading Dominance Of The Stablecoin Issuer SMQKE, an observer and researcher, shared a report that shows that the firm could lose its robust grip in the stablecoin sector. According to the researcher, the leading stablecoin issuer “will lose market dominance to regulated stablecoins like the RLUSD in the future.” Presently, global regulations are being made that focus on the intersection of digital assets and traditional finance. One of the assets that fits nicely into these regulations is Circle’s USDC, which has won approval from the Markets in Crypto-Assets Regulation (MiCA). However, Tether’s USDT appears to be evading regulators’ demands for transparency in the way it operates its underlying assets. As a result, regulated stablecoins will continue to overtake USDT as the market leader in the future. “Only time will tell whether Tether will continue to leak market share to rivals or continue to hold sway with cryptocurrency fans,” the report stated. Stablecoins such as USDP, PYUSD, USDG, and RLUSD steadily challenge USDT’s dominance as they reflect stronger institutional alignment. This is because official regulations govern each stablecoin and have reserves that are mainly made up of liquid, high-quality assets. A Major Shift From Tether Coming Soon As the stablecoin landscape evolves, Tether, the largest stablecoin firm, continues to make steps to provide a reliable network. A recent report shows that the leading platform plans to let go of some of the top chains in the sector in the upcoming months. In a significant move, Tether, the first blockchain-enabled platform, has announced it will discontinue USDT support on five key blockchains. Such a move is meant to streamline its operations and bolster the network’s efficiency. The announcement was shared by the Phoenix Group, a crypto media on the X platform, on Sunday. According to the report, the impending disconnection is scheduled to take place in the next two months, particularly in September 2025. This strategic shift by Tether tends to phase out chains that no longer meet the changing technical or community standards of the stablecoin issuer. In addition, it reflects the firm’s increased focus on preserving liquidity and security throughout its ecosystems. The list of blockchains mentioned in the company’s report includes Omni Layer, Bitcoin Cash, Kusama Network, EOS Network, and Algorand. Tether will discontinue USDT redemptions and freeze remaining tokens on these chains starting from September 1, 2025. As stated in the report, Tether’s decision to cut ties with these key chains comes after a strategic infrastructure evaluation and represents a move toward more utilized and scalable networks. Prior to the September deadline, the firm has urged users holding USDT on the affected chains to redeem or migrate their tokens to other supported chains. Failure to do so before then is likely to lead to loss of funds and assets.
