Tether co-founder Reeve Collins is launching a decentralized stablecoin that may compete with USDT in an more and more crowded house that’s nonetheless dominated by two gamers.
The undertaking will debut a stablecoin referred to as USP on Ethereum and Solana blockchains within the second half of 2025, based on Bloomberg.
Pi will use good contracts to mint its USP stablecoin and minters will earn yields within the type of one other token referred to as USI.
Competing With Tether
The stablecoin will likely be backed by yield-bearing real-world belongings equivalent to bonds and over-collateralized with belongings like Treasuries and money-market funds.
“We view Pi Protocol because the evolution of stablecoins,” Collins informed Bloomberg earlier than evaluating it to Tether.
“Tether has been extraordinarily profitable in showcasing demand for stablecoins. However they hold all of the yield. We consider 10 years later the market is absolutely able to evolve.”
Collins, who was CEO from 2013 to 2015, and his companions bought Tether to the operators of the Bitfinex trade in 2015. Again then, USDT stablecoin’s market worth was lower than $1 billion, at the moment it’s near report highs of greater than $140 billion.
Pi Chief Government Officer Bundeep Singh Rangar mentioned, “You need belongings which are non-correlated to crypto which are mid- to excessive yield, low threat.”
“We’ve got a mechanism that assesses the standard of the asset. They’re ones which are vetted on their loss ratio and origination of the place they’re coming from,” he added.
Stablecoins acquired a inexperienced mild this 12 months with the election of US President Donald Trump. In his first days in workplace, he signed an government order selling US dollar-pegged stablecoin adoption whereas Congress is engaged on a regulatory framework for them.
Coinbase CEO Brian Armstrong additionally desires to chip away at Tether’s market dominance. On the firm earnings name final week, he mentioned that the agency goals to make USDC “primary” however admitted that this ambition was a “stretch objective.”
A Crowded House
USP is getting into a particularly aggressive stablecoin market that’s dominated by Tether which has a share of 60% from a present provide of $141 billion.
Circle’s USDC has seen its provide and market share develop in current months, and it’s at the moment $56 billion, giving it a market share of 24%.
The third largest stablecoin is USDS, previously DAI, which has slightly below $9 billion in circulation and a market share of just about 4%.
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