Tether Opts Out of Blockchain Race Citing Market Saturation

Tether Holdings, the issuer of the world’s largest stablecoin USDT, has determined to not launch its personal blockchain. Paolo Ardoino, the CEO of Tether, spoke about this choice and referred to an excessively saturated market.

In the meantime, a flood of recent blockchains are being launched into the crypto ecosystem, usually with out clear use circumstances.

CEO of Tether believes blockchains are simply transport layers

Paolo Ardoino, Tether’s CEO, expressed his views in an interview with Bloomberg.

“We’re excellent at know-how, however I believe blockchains will nearly develop into a commodity sooner or later. Launching a blockchain your self will not be the fitting transfer. There are already excellent blockchains,” Ardoino mentioned.

That is why the corporate has chosen to deal with leveraging present know-how reasonably than including to the plethora of platforms out there. Based on Tether, the advantages of launching a blockchain don’t outweigh the redundancies it might introduce into the ecosystem.

Consequently, DefiLlama information helps this cautious strategy: of the 307 chains, the highest 5 account for about 86% of the overall worth (TVL). Notably, Ethereum (ETH) is within the lead with a TVL of roughly $50 billion and dominates the market with a 57% share.

Learn extra: 9 Finest Blockchain Protocols to Know in 2024

Complete worth locks all chains. Supply: DefiLlama

Tether’s present integration into main blockchains reminiscent of TRON, which handles 49% of USDT’s provide and owns $8.1 billion in TVL, demonstrates the viability and energy of present infrastructures. Based by crypto magnate Justin Solar in 2017, TRON highlights the aggressive surroundings wherein new blockchains should function.

Ardoino’s technique for Tether is to stay blockchain ‘agnostic’, specializing in the very best degree of safety and sustainability for USDT whatever the platform it makes use of.

“For us, blockchains are simply transport layers,” Ardoino famous.

Nevertheless, Tether has not slowed its tempo of innovation inside the stablecoin sector. Earlier this week, it introduced the upcoming launch of a stablecoin pegged to the United Arab Emirates Dirham (AED).

The brand new token can be absolutely backed by liquid reserves within the UAE. It goals to supply a steady and cost-effective digital asset for worldwide commerce and remittances, whereas decreasing transaction prices and offering a hedge towards foreign money volatility.

Learn extra: A information to one of the best stablecoins in 2024

Furthermore, the corporate desires to broaden into varied sectors, together with synthetic intelligence (AI), biotechnology and telecommunications. To not point out that Tether reported web revenue of $5.2 billion for the primary half of 2024, offering important funding for its enlargement initiatives.