Tether Holdings, the company behind the largest stablecoin by market capitalization, has dismissed the possibility of launching its blockchain. In a recent interview, CEO Paolo Ardoino stated that developing a proprietary blockchain is “not the right move” now.
Paolo Ardoino emphasized that the existing blockchains are sufficient and suggested that the market may already be too crowded with blockchain networks.
Focus shifts to USDT expansion
Instead of pursuing its blockchain, Tether is concentrating on expanding its USDT stablecoin. Since March, Tether’s supply has increased by 14%, reflecting the growing demand for stablecoins. The company has also been active in launching USDT on new platforms, recently announcing two significant developments.
The dollar-pegged stablecoin is set to debut on the layer-1 blockchain Aptos Network. Tether is preparing to introduce a new stablecoin pegged to the United Arab Emirates (UAE) dirham (AED). These moves indicate Tether’s strategic focus on broadening the reach of its existing products rather than creating a new blockchain. By launching USDT on additional platforms, Tether aims to solidify its position as a dominant player in the stablecoin market.
Tether dismisses speculation on new Blockchain
Paolo Ardoino’s comments have put any speculation that Tether might develop its blockchain to rest. In his interview with Bloomberg, Ardoino clarified that launching a blockchain under Tether’s banner might not be beneficial. He acknowledged the presence of several robust blockchains in the market and hinted at the possibility of market saturation.
Ardoino also shared his perspective on the future of blockchains, suggesting that they could become commodities over time. According to data from DefiLlama, the total value locked (TVL) in blockchains is estimated at just under $90 billion. Of this, Ethereum holds the largest share, commanding 57% of the market, followed by Tron at 7%, Solana at 6%, and Binance Smart Chain (BSC) at 5%.
100,000,000 #USDT (100,070,000 USD) transferred from Tether Treasury to #Bitfinexhttps://t.co/LhS4U9CqjE
— Whale Alert (@whale_alert) August 22, 2024
Tether prioritizes security and sustainability
Rather than creating a new blockchain, Ardoino emphasized Tether’s commitment to ensuring the security and sustainability of the blockchains on which USDT operates. He referred to blockchains as “transport layers” and underscored the importance of these layers being secure and reliable for Tether’s operations.
Tether continues to grow its influence in the stablecoin market. Michael Nadeau, founder of The DeFi Report, pointed out that Tether’s supply has risen by 14% since March, which he attributes to the ongoing bull run. Nadeau also suggested that investors might shift their funds from traditional money market accounts into stablecoins, further boosting Tether’s market position.
According to the latest data on CoinMarketCap, Tether’s market capitalization is $117.7 billion, with a circulating supply of USDT 117.6 billion. In just one week, Tether has minted over 3 billion USDT, and Lookonchain reported that 3.22 billion USDT moved from the Tether Treasury to exchanges after August 5.
Tether’s decision to expand USDT’s presence across various blockchains rather than launching a new network reflects its strategic approach to maintaining its leadership in the stablecoin sector.
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