Tether co-founder Reeve Collins is launching a decentralized stablecoin that can compete with USDT in an more and more crowded house that’s nonetheless dominated by two gamers.
The challenge will debut a stablecoin referred to as USP on Ethereum and Solana blockchains within the second half of 2025, according to 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 can be backed by yield-bearing real-world assets akin 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 preserve all of the yield. We consider 10 years later the market is de facto able to evolve.”
Collins, who was CEO from 2013 to 2015, and his companions bought Tether to the operators of the Bitfinex change in 2015. Again then, USDT stablecoin’s market worth was lower than $1 billion, as we speak it’s near document highs of greater than $140 billion.
Pi Chief Govt Officer Bundeep Singh Rangar mentioned, “You need belongings which might be non-correlated to crypto which might be mid- to excessive yield, low threat.”
“We’ve a mechanism that assesses the standard of the asset. They’re ones which might be vetted on their loss ratio and origination of the place they’re coming from,” he added.
Rules are shifting. Yield-bearing stablecoins would be the subsequent trillion-dollar asset class
— Pi Protocol (@piprotocol) February 18, 2025
Stablecoins bought a inexperienced gentle this yr 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 needs 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 aim.”
A Crowded Area
USP is coming into an especially 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 grow in current months, and it’s presently $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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