Tether, the issuer behind the world’s largest stablecoin, USDT, has decided against launching its own blockchain, citing market saturation and strategic concerns. Paolo Ardoino, Tether’s CEO, shared in an interview with Bloomberg News that the company’s decision stems from an analysis of the current blockchain landscape, where numerous platforms already offer similar functionalities.
Ardoino explained that entering the crowded blockchain market might not be the “right move” for Tether, as the company believes there are already “very good blockchains” available to the public. Instead, Tether will continue to use existing blockchains as “transport layers” to maintain peak sustainability and security for USDT trading.
During the interview, Ardoino emphasized that blockchains have become increasingly commoditized, with many providing comparable services to users. As a result, Tether is content with remaining blockchain-agnostic, as long as its stablecoin trading remains efficient and secure.
In a separate YouTube interview with Unlock Blockchain, Ardoino highlighted Tether’s foundational role in the stablecoin market, stating, “We created the entire stablecoin market in 2014. There was no stablecoin before us.”
Despite opting out of launching its own blockchain, Tether has been expanding its reach. On August 19, Tether launched USDT on the Aptos blockchain, aiming to reduce transaction costs and improve global access to digital currency. The integration with Aptos is expected to leverage the blockchain’s speed and scalability, offering users gas fees “only a fraction of a penny.”
Additionally, Tether has entered the UAE market by partnering with Phoenix Group and Green Acorn Investments to launch a dirham-backed stablecoin. This new digital asset aims to represent the dirham currency, fully backed by liquid UAE-based reserves, and offers a cost-effective method for accessing the benefits of the AED.