Tether Shuns Blockchain Launch Amid Market Saturation. Read CoinChapter.com on Google News
Nairobi (CoinChapter.com)—Tether shuns blockchain launches as it strategically opts not to introduce its own blockchain. The company, recognized for issuing the world’s largest stablecoin, USDT, analyzed current market conditions and determined that launching a proprietary blockchain would not align with its long-term goals.
According to Tether’s CEO, Paolo Ardoino, the decision stems from concerns over market saturation and the effectiveness of existing blockchain networks, as detailed in an interview with Bloomberg News.
Market Saturation Dictates Strategic Decisions
Tether shunned blockchain launches to avoid competing in a crowded market with similar platforms. CEO Paolo Ardoino explained that the company finds existing blockchains sufficient to ensure USDT’s stability and security.
He emphasized that launching a new blockchain would not align with Tether’s focus on maintaining USDT’s reliability across various networks. By utilizing proven blockchains as “transport layers,” Tether continues to prioritize the efficiency and security of USDT without adding to the market’s congestion.
Paolo Ardoino, CTO of Tether and Bitfinex, did an interview with Unlock Media. Source: YouTube
In a discussion on Unlock Blockchain, Ardoino described Tether as well-suited to the market. He pointed out that Tether focuses on sustaining USDT’s value and liquidity across various blockchains rather than competing with a new platform.
Not pursuing a blockchain launch aligns with Tether’s strategy of integrating USDT into established and scalable networks. Recently, Tether expanded USDT to the Aptos blockchain to reduce transaction fees and enhance accessibility. This approach emphasizes Tether’s focus on operational efficiency without creating new infrastructure.
Tether’s Expansion Continues Despite Blockchain Decision
Tether continues to extend its operations despite deciding against launching its blockchain. On Aug. 19, the company integrated USDT into the Aptos blockchain, broadening its network. Aptos provides quick, low-cost transactions, which aligns with Tether’s digital currency management approach.
Tether announces the development of a UAE Dirham-pegged stablecoin. Source: Tether/X
Additionally, Tether partnered with Phoenix Group and Green Acorn Investments to introduce a dirham-backed stablecoin in the UAE. This project offers a digital representation of the dirham, supported by UAE-based reserves, marking Tether’s entry into the UAE market.
Tether’s decision to forgo its blockchain reflects a focus on strategic growth. Tether reinforces USDT’s role in the global digital currency framework by concentrating on network integration and partnerships.
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