Former Tether Director Launches New Stablecoin Venture

One of Tether’s co-founders and former director, Reeve Collins, is set to lead a new stablecoin initiative, Pi Protocol. The protocol and its token, USP, are slated for release on Ethereum and Solana in the latter half of 2025 or sooner, according to Bloomberg.

“We view Pi Protocol as the evolution of ‘stablecoins’. Tether has been extremely successful in demonstrating the demand for stablecoins. However, they keep all the profits. We believe that after 10 years, the market is truly ready for development,” the entrepreneur noted.

The asset will be backed by income-generating RWAs, including bonds, money market funds, and tokenized insurance products.

“You need assets that are uncorrelated with cryptocurrency and offer medium to high yields with low risks,” noted Pi Protocol CEO Bundip Singh Rangar.

An automated system based on smart contracts has been created to maintain the over-collateralization ratio, which assesses the value of assets.

The developers plan to share profits from the venture with the community. In addition to USP, the project includes the USI token for rewarding users and USPi for governance participation.

According to the developers’ vision, USPi holders will receive a share of the profits in USI tokens, generated by the smart contract when issuing USP stablecoins.

The team and project advisors will receive 25% of the USPi supply. The token presale is already open.

Earlier in February, a draft bill for stablecoin regulation was introduced in the US Congress.