Tether has shelved plans to launch its own blockchain, citing concerns over market saturation and strategic considerations.
According to Tether CEO Paolo Ardoino in an interview with Bloomberg News, the company believes that with the current abundance of high-quality blockchains available, launching a new one might not be the right move.
In a YouTube interview with Unlock Blockchain, Ardoino reiterated Tether’s pioneering role in the stablecoin market, stating, “We created the entire stablecoin market in 2014; there was no stablecoin before us.”
Ardoino highlighted that the blockchain space is becoming increasingly commoditized, with many blockchains offering similar functionalities. Tether prefers to remain “agnostic” and continue using existing blockchains as “transport layers” for USDT, focusing on maintaining sustainability and security.
Tether has been expanding its presence on other blockchains. Earlier this month, it launched USDT on the Aptos blockchain to reduce transaction costs and improve global accessibility. The integration leverages Aptos’ speed and scalability, providing users with minimal gas fees.
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This move comes after Aptos’ impressive growth, including a “record-breaking” 157 million transactions in a single day in May.
Additionally, Tether has partnered with the United Arab Emirates’ Phoenix Group and Green Acorn Investments to launch a dirham-backed stablecoin. This new stablecoin will be fully backed by liquid UAE-based reserves and offer users a method for accessing the benefits of the AED.
The move marks Tether’s expansion into non-dollar stablecoins, aiming to leverage the UAE’s growing status as a global crypto hub.
Stablecoins, which are digital assets pegged to fiat currencies, offer a hedge against the volatility of cryptocurrencies like Bitcoin. Tether’s USDT, the largest stablecoin, dominates the market with a capitalization exceeding $117 billion, accounting for nearly 70% of the stablecoin market.
In contrast, stablecoins pegged to other fiat currencies, such as Tether’s euro-pegged EURT, have a much smaller market presence. The introduction of a dirham-pegged stablecoin could help diversify Tether’s offerings and cater to the demand for Gulf currencies.
