In a fast-paced cryptocurrency industry where new blockchains are introduced every day, Tether, the company behind the world’s largest stablecoin USDT, is taking a different path, according to a recent report by Svashree Ghosh of Bloomberg News. That’s what it means. However, Tether has apparently decided not to launch its own blockchain, which goes against the current trend.
Tether CEO Paolo Ardoino explained the company’s reasoning in an interview with Bloomberg. He suggested that the blockchain market is becoming oversaturated and that while Tether is good at technology, he believes blockchain will eventually become a commodity. Ardoino added that launching your own blockchain may not be a strategic move given the abundance of good existing blockchains.
This decision may come as a surprise given Tether’s financial resources and USDT’s widespread use. But the company doesn’t seem fazed by the potential challenges of entering an already crowded market. DefiLlama data cited by Bloomberg shows that just five blockchains control around 86% of the total value locked in decentralized finance protocols.
Ethereum, the leading blockchain in terms of commercial importance, boasts a total value locked (TVL) of approximately $87.7 billion, out of a total of $133.2 billion across all chains, according to DefiLlama.
Bloomberg emphasizes that factors such as high speed, low fees, strong security, and practical use cases are essential to blockchain’s success. Ethereum’s early market entry, developer adaptability, and status as home to the second most liquid token contribute to its dominance despite relatively high fees.
Angela Ang, senior policy advisor at blockchain intelligence firm TRM Labs, observes that the blockchain ecosystem is becoming multi-chain, with developers and publishers operating across multiple platforms. According to a Bloomberg article, Ang said the business viability of these platforms depends on their ability to offer unique benefits such as speed, security, cost, interoperability, and other new features. I emphasized.
Tether’s CEO seems satisfied with the company’s current “blockchain agnostic” approach, as long as the platform on which USDT is traded maintains a high level of security and sustainability. “For us, blockchain is just a transport layer,” Ardoino said.
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