Tether, the issuer of USDT, the world’s largest stablecoin, has decided to abandon its own blockchain, citing market saturation and strategic concerns.
In an interview with Bloomberg News, the company’s CEO, Paolo Ardoino, explained that this position was based on his analysis of the blockchain space and the highly competitive market.
Ardoino said it might not be the “right move” for the company to launch its own blockchain because there are already “very good blockchains” available to the public.
relevant: Tether Expands USDT to Aptos Blockchain to Reduce Fees
Market saturation
In the interview, Ardoino noted that blockchain is becoming increasingly commoditized, with many blockchains offering similar features to users.
He therefore explained that USDT transactions are “agnostic” to the rest of the blockchain, as long as they use the blockchain as a “transport layer” to maintain the highest level of sustainability and security.
In a YouTube interview with Unlock Blockchain, Ardoino described Tether as having “product-market fit.”
“We created the entire stablecoin market in 2014. Before us, there were no stablecoins.”
relevant: Tether Plans to Launch Dirham Stablecoin with UAE Partner
Tether Aptos Extension
On August 19, Tether launched USDT on the Aptos blockchain to reduce transaction costs and increase accessibility to digital currencies worldwide.
With the new integration, the company aims to leverage Aptos’ speed and scalability to offer users gas fees that are “a fraction of a penny.”
Tether’s announcement comes on the heels of the Aptos blockchain, which saw significant growth in May, with 157 million transactions in a single day.
relevant: Tether Issues Additional $1 Billion USDT on the Tron Network
Dirham Stablecoin Launch
On August 21, Tether launched a dirham-backed stablecoin in partnership with Phoenix Group and Green Acorn Investments from the United Arab Emirates.
The new stablecoin aims to be a digital representation of the dirham currency that is “fully backed by liquid UAE-based reserves” while adhering to Tether’s “transparent and robust standards.”
This expansion into the UAE market is expected to provide users with a cost-effective way to access the “benefits of AED”.
magazine: Dorji’s ‘Algorithmic Marketplace’ Could Improve Social Media… But Why Not?