- USDT issuer Tether has made a decision regarding blockchains.
- The firm cited market factors for its decision.
- Tether is advancing its stablecoin initiatives.
Tether , the issuer of the world’s largest stablecoin, USDT, has maintained its position as an industry powerhouse over the past years. From scaling its leading stablecoin with integrations onto multiple blockchains to increasing supply, the firm has been on an expansion streak all year.
While the momentum may have been anticipated to lead to Tether’s launch of its own blockchain, the company is taking a different approach.
No Blockchain Plans: Tether CEO
Leading stablecoin issuer Tether has announced that a blockchain launch is not in the works. In a recent interview with Bloomberg , Tether’s CEO Paolo Ardiono announced the firm’s decision, citing market saturation and the potential commoditization of technology.
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Ardoino emphasized that while the company is technologically proficient, existing blockchains already provide robust solutions and may be more effective than establishing a new one.
“Launching a blockchain ourselves might not be the right move. There are very good blockchains,” stated the CEO in the interview, adding that,“For us, blockchains are just transport layers.”The report comes amidst Tether’s recent shuffle in USDT’s blockchain support, where the firm has dropped some platforms while making expansion to new ones.
While the stablecoin issuer may not see a blockchain launch in sight, it is exploring growth opportunities in other areas.
Tether Eyes Dirham-Pegged Stablecoin
Taking its global foothold a step further, Tether has announced its plan to launch a new stablecoin pegged to the United Arab Emirates Dirham (AED).
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The launch will be in collaboration with Phoenix Group PLC, a leading UAE tech conglomerate, and Green Acorn Investments Ltd. It aims to combine the stability of the AED with the technological benefits of blockchain.
The AED-pegged stablecoin will offer users protection against currency fluctuations, facilitate international trades, and streamline remittances.
Tether’s Dirham-pegged stablecoin will be the first to seek regulatory approval under the UAE Central Bank’s newly introduced Payment Token Services Regulation. Its market capitalization is expected to soar to $2.8 trillion by 2028.
On the Flipside
- Tether recently minted 1 Billion USDT on the Tron blockchain.
- USDT has been expanded to the fast-rising TON network, simplifying accessibility for Telegram users.
- In June 2024, Tether unveiled Alloy , a product that combines the dollar’s stability with the security of gold-backed assets.
Why This Matters
While a Tether-owned blockchain could significantly boost the accessibility of its stablecoins, including USDT, the firm’s decision to forgo this move may allow it to focus on strengthening its presence and performance on existing blockchains.
Read this article to learn more about recent legal troubles for Tether:
Tether Vows to Defend Itself Against Celsius’s “Shake Down” Litigation
The controversial orb-scanning Worldcoin project is under investigation again; read more:
Worldcoin Faces Fresh Scrutiny as Colombia Probes Violations
