Tether Abandons Plans for Proprietary Blockchain Amid Market Saturation

Tether Holdings, the issuer of USDT, considered launching its own blockchain but ultimately abandoned the idea due to market saturation, according to Bloomberg.

The company’s CEO, Paolo Ardoino, stated that the decision was influenced by the basic economic principle of supply and demand equilibrium.

“We are very knowledgeable about technology. In the future, blockchain will become almost a commodity. Launching our own might not be the right move. There are very good solutions out there,” he commented.

The agency noted that for Tether, which controls USDT with a capitalization of $117 billion, such a task would have been feasible, given the stablecoin’s widespread use for trading and money transfers.

According to Defi Llama, out of 306 blockchains, the five largest control about 86% of the total value locked (TVL).

In absolute terms, Ethereum accounts for approximately $87.7 billion out of $132.2 billion. TRON, with a TVL of $8.1 billion, processes 49% of the USDT supply.

High speed, low fees, use cases, and robust security are key components of blockchain success, according to Tether.

Ardoino expressed his satisfaction with remaining “blockchain agnostic” regarding where the company’s curated coin is traded. This remains relevant as long as the asset maintains the highest level of security and resilience, he added.

“For us, blockchain is just a transport layer,” the top executive noted.

In April, Tether added support for USDT on The Open Network blockchain, and in August, announced the token’s release on the Aptos network.

In June, the firm decided to cease issuing the stablecoin on the EOS and Algorand networks.

Back in June, Tether launched its first “tethered asset” backed by gold.