Latest Tether USDt (USDT) News Update

By CMC AI
12 September 2025 12:16PM (UTC+0)

What is the latest news on USDT?

TLDR

USDT navigates bullish signals and strategic shifts as reserves surge and regulations tighten. Here are the latest updates:

  1. Exchange Reserves Hit $70B (10 September 2025) – USDT dominates 77% of record-high stablecoin liquidity on exchanges.

  2. Major Banks Seek HK Licenses (8 September 2025) – ICBC Asia and HSBC pursue stablecoin approvals under Hong Kong’s new framework.

  3. Blockchain Support Sunset (12 July 2025) – USDT redemption ends on five legacy chains, prioritizing scalable networks.

Deep Dive

1. Exchange Reserves Hit $70B (10 September 2025)

Overview: Stablecoin reserves on exchanges reached $70B on September 2, 2025, driven by USDT ($53B) and USDC ($14B). This marks a 119% increase since October 2023, correlating with Bitcoin’s 3.3x price surge. CryptoQuant analysts call this a “bullish signal” for crypto markets.
What this means: High reserves suggest latent buying power, which could fuel rallies if deployed into risk assets. However, reliance on USDT’s dominance introduces systemic risks if redemption pressures emerge. (Bitget)

2. Major Banks Seek HK Licenses (8 September 2025)

Overview: ICBC Asia and HSBC applied for Hong Kong stablecoin licenses under the HKMA’s invitation-only regime starting August 1, 2025. The HKMA plans to approve <10 licenses initially, emphasizing compliance with reserve requirements.
What this means: Institutional adoption could enhance USDT’s liquidity in Asia but risks dilution if banks prioritize alternatives. Hong Kong’s framework may set a precedent for stricter reserve audits, pressuring Tether’s transparency. (MEXC)

3. Blockchain Support Sunset (12 July 2025)

Overview: Tether discontinued USDT support on Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand, freezing remaining tokens after September 1. CEO Paolo Ardoino cited a focus on “scalable, developer-active chains” like Ethereum and Tron.
What this means: Streamlining reduces operational costs but inconveniences users on deprecated chains. The move aligns with Tether’s pivot toward Layer-2 ecosystems and regulatory-compliant networks. (Crypto Times)

Conclusion

USDT’s dominance grows amid surging exchange reserves and institutional interest, while strategic cuts to legacy chains sharpen its focus. Will Hong Kong’s regulatory model accelerate USDT’s institutional adoption—or expose gaps in its reserve transparency?

What are people saying about USDT?

TLDR

Tether’s USDT navigates dominance debates, regulatory heat, and blockchain shakeups. Here’s what’s trending:

  1. Dominance charts spark altcoin hopes – USDT.D breakdown hints at crypto-wide bullish rotation

  2. Tether cuts legacy chains – Ending USDT support on EOS, Algorand, and others by September

  3. Regulatory crosshairs intensify – GENIUS Act compliance looms as EU delistings expand

  4. Technical tug-of-war – Mixed signals from ascending triangles vs. bearish rejections


Deep Dive

1. @Crypto_Scient: USDT Dominance Breakdown Bearish

“BTC remains short-term bullish only if USDT.D stays below the purple box. Above the box, as we are now, I expect a move into the red box above, which likely means further downside for #BTC.”
– @Crypto_Scient (25.6K followers · 412K impressions · 2025-08-04 09:15 UTC)
View original post
What this means: Rising USDT dominance signals traders moving funds to stablecoins, typically bearish for Bitcoin and alts. A sustained breakdown below 4.0% USDT.D could trigger altcoin inflows.

2. @Tether_to: Blockchain Support Sunset Mixed

“Tether will end USDT support on Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand starting September 1, 2025.”
– @Tether_to (1.2M followers · 3.8M impressions · 2025-07-11 14:04 UTC)
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What this means: Streamlining operations toward high-activity chains like Tron and Ethereum improves efficiency but risks fragmenting liquidity for users on sunsetted networks.

3. @Bitrue: Regulatory Pressure Mounts Neutral

“Tether must adapt to GENIUS Act requirements, including 100% reserve backing and federal oversight, while facing EU delistings under MiCA.”
– Bitrue analysis (2025-05-30 17:14 UTC)
View original post
What this means: Compliance costs and transparency demands could strain Tether’s treasury-heavy model, though its $120B U.S. Treasury holdings provide short-term stability.

4. @Alexsorange1: Price Volatility Speculation Bullish

“#T USDT saw a 17.73% rebound from 0.01398 support. Resistance at 0.01858 could cap gains if volume stalls.”
– @Alexsorange1 (89.3K followers · 221K impressions · 2025-06-15 14:12 UTC)
View original post
What this means: While USDT maintains its $1 peg, speculative trading pairs (like T/USDT) show volatility, reflecting niche market activity rather than stablecoin instability.


Conclusion

The consensus on USDT is mixed, balancing its liquidity dominance against regulatory skepticism and technical divergences. While its $169B market cap and Tron integration (75.7B USDT) showcase utility, bearish dominance charts and MiCA-driven EU delistings cloud sentiment. Watch the 4.0% USDT.D level – a sustained breakdown could validate altseason bets, while regulatory clarity (or lack thereof) will dictate institutional adoption.

What is the latest update in USDT’s codebase?

TLDR

Tether USDt (USDT) has focused on infrastructure optimization and cross-chain innovation in recent months.

  1. Bitcoin Integration via Taproot (28 August 2025) – USDT now natively supports Bitcoin via Lightning Network.

  2. Legacy Blockchain Sunset (29 August 2025) – USDT support ends on 5 low-activity chains.

  3. Wallet Development Kit Upgrade (14 August 2025) – Lightning Network integration for faster transactions.

Deep Dive

1. Bitcoin Integration via Taproot (28 August 2025)

Overview: Tether enabled native USDT transfers on Bitcoin’s network using Taproot Assets and Lightning Network, bypassing wrapped tokens.

Technical implementation leverages Bitcoin’s Taproot upgrade for private, low-cost transactions. Over $1.27B in USDT is locked on Ethereum as collateral for cross-chain minting. This allows instant settlements for micropayments and DeFi apps on Bitcoin’s base layer.

What this means: This is bullish for USDT because it expands use cases into Bitcoin’s ecosystem, combining stablecoin utility with Bitcoin’s security. Users benefit from faster, cheaper transactions for decentralized gaming and AI-driven microservices.
(Source)

2. Legacy Blockchain Sunset (29 August 2025)

Overview: Tether will freeze remaining USDT on Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand by 1 September 2025.

These chains collectively host <0.1% of USDT’s $169B supply. For example, Algorand holds just $841,600 USDT. The decision follows months of declining usage, with Ethereum and Tron now processing 98% of USDT volume.

What this means: This is neutral for USDT because it streamlines operations but requires users on deprecated chains to migrate. Liquidity consolidates on high-activity networks, reducing fragmentation risks.
(Source)

3. Wallet Development Kit Upgrade (14 August 2025)

Overview: Tether integrated Lightspark’s Bitcoin Lightning Network tech into its open-source Wallet Development Kit (WDK).

Developers can now build self-custodial wallets supporting Lightning-enabled USDT transactions. The WDK reduces reliance on centralized bridges, with transaction fees as low as $0.001.

What this means: This is bullish for USDT because it enhances programmable wallets for retail and institutional users. Developers gain tools to create seamless cross-chain payment apps, boosting adoption.
(Source)

Conclusion

Tether is prioritizing Bitcoin integration, infrastructure efficiency, and developer tools to cement USDT’s role as the dominant stablecoin. With legacy chains sunsetting and Lightning adoption rising, how will USDT’s dominance evolve in a multi-chain Bitcoin-centric future?

What is next on USDT’s roadmap?

TLDR

Tether USDt's roadmap focuses on expanding Bitcoin integration, ecosystem events, and strategic partnerships.

  1. RGB Protocol Integration (28 August 2025) – Launching USDT on Bitcoin via RGB for private, scalable transactions.

  2. Plan ₿ Forum (24–25 October 2025) – Annual event discussing Bitcoin, stablecoins, and decentralized finance.

  3. Bit2Me Expansion (7 August 2025) – Leading a €30M funding round to grow Spanish-language crypto services.

Deep Dive

1. RGB Protocol Integration (28 August 2025)

Overview: Tether announced plans to launch USDT on RGB, a Bitcoin Layer 2/3 protocol enabling asset issuance with enhanced privacy and scalability. This integration leverages Bitcoin’s Taproot upgrade to support off-chain transactions while maintaining on-chain settlement.

What this means: Bullish for USDT adoption as it expands Bitcoin’s utility beyond store-of-value use cases. Risks include slower-than-expected developer adoption of RGB, which remains a nascent protocol (Tether).

2. Plan ₿ Forum (24–25 October 2025)

Overview: Tether’s fourth annual event in Lugano will feature discussions on Bitcoin, stablecoin regulation, and decentralized infrastructure. Headliners include Assange family representatives and crypto industry leaders.

What this means: Neutral for price but bullish for USDT’s brand authority. The forum could catalyze partnerships or policy advocacy, though tangible outcomes may take months to materialize (Tether).

3. Bit2Me Expansion (7 August 2025)

Overview: Tether acquired a minority stake in Bit2Me, a Spanish-language crypto platform, and led a €30M funding round to accelerate its growth in Latin America and Europe.

What this means: Bullish for USDT’s regional adoption, particularly in underbanked markets. Success hinges on Bit2Me’s ability to convert new users into long-term stablecoin holders (Tether).

Conclusion

Tether is doubling down on Bitcoin integration and global ecosystem growth, balancing technical innovation (RGB) with grassroots expansion (Bit2Me). The Plan ₿ Forum will test its ability to shape regulatory and technological narratives. How will USDT’s Bitcoin-centric strategy impact its dominance against competitors like USDC?

CMC AI can make mistakes. Not financial advice.
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