Tether co-founder Reeve Collins is launching a decentralized stablecoin that will compete with USDT in an increasingly crowded station that is peaceable dominated by two gamers.
The venture will debut a stablecoin called USP on Ethereum and Solana blockchains within the 2nd half of 2025, in step with Bloomberg.
Pi will employ orderly contracts to mint its USP stablecoin and minters will execute yields within the assemble of one other token called USI.
Competing With Tether
The stablecoin will be backed by yield-bearing true-world property such as bonds and over-collateralized with property love Treasuries and money-market funds.
“We belief Pi Protocol because the evolution of stablecoins,” Collins told Bloomberg sooner than comparing it to Tether.
“Tether has been extremely a success in showcasing seek recordsdata from for stablecoins. But they comprise your total yield. We heart of attention on 10 years later the market is de facto ready to adapt.”
Collins, who became as soon as CEO from 2013 to 2015, and his companions sold Tether to the operators of the Bitfinex change in 2015. Back then, USDT stablecoin’s market worth became as soon as lower than $1 billion, at the moment time it is some distance shut to file highs of better than $140 billion.
Pi Chief Executive Officer Bundeep Singh Rangar talked about, “You need property which will be non-correlated to crypto which will be mid- to excessive yield, low chance.”
“We have got a mechanism that assesses the quality of the asset. They’re ones which will be vetted on their loss ratio and origination of the build they’re coming from,” he added.
Regulations are enchanting. Yield-bearing stablecoins would possibly per chance per chance well well be the next trillion-dollar asset class
— Pi Protocol (@piprotocol) February 18, 2025
Stablecoins acquired a green light this year with the election of US President Donald Trump. In his first days in space of business, he signed an executive inform promoting US dollar-pegged stablecoin adoption whereas Congress is working on a regulatory framework for them.
Coinbase CEO Brian Armstrong also needs to chip away at Tether’s market dominance. On the firm earnings name final week, he talked about that the firm goals to assemble USDC “#1” but admitted that this ambition became as soon as a “stretch aim.”
A Crowded Space
USP is getting into an extremely competitive stablecoin market that is dominated by Tether which has a chunk of 60% from a recent offer of $141 billion.
Circle’s USDC has seen its offer and market piece develop in most as a lot as date months, and it is some distance currently $56 billion, giving it a market piece of 24%.
The third greatest stablecoin is USDS, formerly DAI, which has somewhat below $9 billion in circulation and a market piece of virtually 4%.
