Tether’s USDT has become the world’s largest stablecoin because it combines utility, security, and accessibility. In line with Tether’s commitment to keeping USDT accessible and secure, Tether has expanded USDT across several blockchains. As USDT has become available on more blockchains, Tether has developed a plan for token recovery in the event that any blockchain on which USDT is available becomes significantly disrupted.

USDT is a lifeline for hundreds of millions of users across the globe. USDT is especially important in emerging markets and developing countries, where it can play a meaningful role in day-to-day lives by providing an alternative to unstable fiat currencies and inefficient or unreliable payment rails. As part of honoring the trust placed in Tether, we believe it is crucial to ensure that, even in unlikely worst-case scenarios, holders of USDT can feel secure.

Blockchains are used only as a transport layer for USDT. This allows USDT to operate on multiple blockchains and for Tether’s customers to choose from over 15 blockchains, including Ethereum, Polygon, Solana, Tron, and Tezos. This widespread adoption underscores Tether’s commitment to interoperability and accessibility.

Before Tether begins to support a new blockchain, Tether conducts a rigorous due diligence process. However, the blockchains are not controlled by Tether and there is always the risk of difficulties and changes. While catastrophic failures are unlikely, Tether’s commitment to resilience has led it to develop a plan to protect access to USDT in these difficult scenarios.

To address the risk that a blockchain could become significantly disrupted, Tether has established an official recovery tool that it intends to deploy to allow users to migrate USDT between blockchains. Holders of USDT would be required to verify ownership of their addresses on the disrupted blockchain and a recipient address on another supported blockchain and, subject to their agreement to certain terms and conditions, the tool would migrate the USDT between them. Tether must balance its desire to support holders with its commitment to compliance with the law. Consequently, in line with Tether’s Terms of Service, Tether would not make this recovery tool available to all holders of USDT or in all jurisdictions.

Affected holders would have the option to initiate the migration process through a user-friendly interface, accessible via web or command-line tools. This process involves cryptographically signing a request for migration to verify ownership of Tether tokens. Support for popular browser extension wallets and hardware wallets is expected to be available for this process. Additionally, a command-line interface is expected to allow users to input their private key directly, enabling them to sign the necessary message using an open-source script on their local machine.

The growing demand for Tether tokens across multiple blockchains calls for a forward-thinking strategy in managing risks and maintaining resilience. Tether knows holders around the world depend on USDT.  That’s why Tether has created these plans to help protect your holdings of USDT and keep operations running smoothly, even during unexpected challenges. As the world of digital currency evolves, Tether is dedicated to maintaining its position at the forefront of digital commerce in terms of stability, security, ease of use, and innovation.

– Last Update: July 2, 2024 –

Forward-Looking Statements

Certain statements in this press release may be forward-looking in nature. The words “believe,” “expect,” “estimate,” “could,” “should,” “intend,” “may,” “plan,” “seek,” “anticipate,” “project” and similar expressions, among others, generally identify “forward-looking statements,” which speak only as of the date the statements were made. The matters discussed in these forward-looking statements are subject to a number of risks, trends, and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements. None of Tether nor any other person is responsible for updating or revising any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.