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Tether Co-Founder to Launch Yield-Bearing Stablecoin USP
One of the original founders and former CEO of Tether, Reeve Collins, is set to launch a new decentralized stablecoin project called Pi Protocol. The upcoming stablecoin, dubbed USP, will be available on both Ethereum and Solana blockchains by the second half of 2025.
The newly formed stablecoin will utilize smart contracts to mint its USP token, while also offering yields in the form of another token called USI for those who participate in the process. The innovative approach is aimed at providing a more transparent and accessible solution compared to existing market leaders like Tether (USDT).
Tether Co-Founder Reeve Collins believes that the time has come for the market to evolve, stating that “we view Pi Protocol as the evolution of stablecoins.” He takes aim directly at Tether, pointing out that while USDT has been successful in demonstrating demand for stablecoins, it has kept all yields for itself. This stance is seen by many as a major competitive advantage.
In an interview with Bloomberg, Collins went on to say that “Tether has been extremely successful in showcasing demand for stablecoins. But they keep all the yield. We believe 10 years later the market is really ready to evolve.”
After Tether sold to the operators of the Bitfinex exchange back in 2015, Pi Protocol’s CEO Bundeep Singh Rangar emphasized that Pi will focus on providing assets with mid- to high yields, low risk, and non-correlated to crypto. He also highlighted their mechanism for assessing asset quality, which evaluates loss ratios and origin.
In recent months, the stablecoin market has experienced rapid growth due in part to regulatory shifts. The election of US President Donald Trump led to an executive order encouraging the adoption of dollar-pegged stablecoins. Additionally, Congress is currently working on a regulatory framework for these assets.
Pi Protocol will be entering a crowded space dominated by Tether and Circle’s USD Coin (USDC), which has recently seen its supply and market share increase. However, with USDC having a current market capitalization of $56 billion and a 24% market share, it is unclear whether Pi can gain traction in the competitive landscape.
Nonetheless, Collins’ entry into the stablecoin market is expected to provide an additional layer of competition and innovation, ultimately benefiting investors and traders.
Source: cryptopotato.com
