Tether Holdings, the issuer of the world’s main stablecoin USDT, has determined to not launch its personal blockchain. Paolo Ardoino, the CEO of Tether, talked about this determination, citing an excessively saturated market.
In the meantime, there’s a flurry of latest blockchains being launched within the crypto ecosystem, usually with out clear use instances.
Tether CEO Believes Blockchains Are Simply Transportation Layers
Paolo Ardoino, the CEO of Tether, expressed his perspective in an interview with Bloomberg.
“We’re excellent in know-how, however I believe blockchains will turn out to be nearly a commodity sooner or later. Launching a blockchain ourselves won’t be the proper transfer. There are excellent blockchains already,” Ardoino stated.
Due to this fact, the corporate has chosen to give attention to leveraging current know-how fairly than including to the plethora of accessible platforms. Based on Tether, the advantages of launching a blockchain don’t outweigh the redundancies it might introduce into the ecosystem.
Consequently, information from DefiLlama helps this cautious strategy – out of 307 chains, the highest 5 account for about 86% of the entire worth locked (TVL). Notably, Ethereum (ETH) leads with a TVL of about $50 billion and dominates the market with a 57% share.
Learn extra: 9 Greatest Blockchain Protocols To Know in 2024
Whole Worth Locked All Chains. Supply: DefiLlama
Tether’s current integration into main blockchains like TRON, which handles 49% of USDT’s provide and holds $8.1 billion in TVL, reveals the viability and power of current infrastructures. TRON, based by crypto mogul Justin Solar in 2017, highlights the aggressive surroundings through which new blockchains should function.
Ardoino’s technique for Tether is to stay blockchain “agnostic,” specializing in the best ranges of safety and sustainability for USDT, no matter the platform it makes use of.
“For us, blockchains are simply transport layers,” Ardoino remarked.
Nevertheless, Tether has not slowed down its tempo in innovating 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 is about to be absolutely backed by liquid reserves based mostly within the UAE. It goals to supply a secure and cost-effective digital asset for worldwide commerce and remittances whereas decreasing transaction charges and providing a hedge towards foreign money volatility.
Learn extra: A Information to the Greatest Stablecoins in 2024
Moreover, the corporate is looking for to increase into various sectors, together with synthetic intelligence (AI), biotechnology, and telecommunications. To not point out, Tether reported $5.2 billion in internet earnings for the primary half of 2024, offering substantial monetary assets for its enlargement initiatives.