Tether co-founder Reeve Collins is launching a decentralized stablecoin that may compete with USDT in an more and more crowded house that’s nonetheless dominated by two gamers.
The challenge will debut a stablecoin known 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 known as USI.
Competing With Tether
The stablecoin will probably be backed by yield-bearing real-world assets resembling bonds and over-collateralized with property 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 maintain all of the yield. We consider 10 years later the market is absolutely able to evolve.”
Collins, who was CEO from 2013 to 2015, and his companions bought Tether to the operators of the Bitfinex alternate in 2015. Again then, USDT stablecoin’s market worth was lower than $1 billion, as we speak it’s near file highs of greater than $140 billion.
Pi Chief Government Officer Bundeep Singh Rangar mentioned, “You need property which can be non-correlated to crypto which can be mid- to excessive yield, low danger.”
“Now we have a mechanism that assesses the standard of the asset. They’re ones which can be vetted on their loss ratio and origination of the place they’re coming from,” he added.
Laws are shifting. Yield-bearing stablecoins would be the subsequent trillion-dollar asset class
— Pi Protocol (@piprotocol) February 18, 2025
Stablecoins received a inexperienced mild this yr with the election of US President Donald Trump. In his first days in workplace, he signed an govt order selling US dollar-pegged stablecoin adoption whereas Congress is engaged on a regulatory framework for them.
Coinbase CEO Brian Armstrong additionally desires 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 House
USP is getting into a particularly 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 latest months, and it’s presently $56 billion, giving it a market share of 24%.
The third largest stablecoin is USDS, previously DAI, which has just below $9 billion in circulation and a market share of virtually 4%.
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