Amid speculation that Tether, the largest stablecoin in the cryptocurrency market, USDTCoinDesk is preparing to launch its own blockchain technology, and the company’s CEO, Paolo Ardoino, has addressed the rumors in key detail.
Tether Abandons Plans to Launch Its Own Blockchain
in interview In an interview with Bloomberg News, Ardoino acknowledged the technological potential of Tether, but noted that blockchains are quickly becoming a “commodity” in the market. Ardoino said
We are very good at technology, but I think blockchains will become a commodity in the future. It may not be the right move to launch a blockchain ourselves. There are very good blockchains out there.
According to Bloomberg, the stablecoin giant’s decision not to build its own blockchain network is notable, given Tether’s dominant position in the cryptocurrency market. Market value With a total value of $115 billion, USDT is the most widely used stablecoin and a major platform for entering and exiting cryptocurrency trading.
However, Ardoino’s comments suggest that Tether is prioritizing the security and sustainability of its stablecoin over the potential benefits of having its own blockchain. “For us, blockchains are just transmission layers,” he said.
Dominance of the Big Five Blockchains
The report also indicates that Blockchain The blockchain ecosystem is becoming increasingly diverse and competitive, with data from DeFiLlama showing that the top five blockchain networks control around 86% of the total value locked (TVL) across 306 chains.
These are BNB Smart Chain, Ethereum, Polygon, TRON, and Avalanche, with a large amount of decentralized applications (Dapps) developed and contracts issued on the chains, according to DappRadarr. Data.
However, Ethereum, the leading blockchain by usage, accounts for $87.7 billion of the total value blocked out of $133.2 billion across all networks. Other blockchains, such as Tron, which handles 49% of the USDT supply, have also proven themselves as viable alternatives to the stablecoin Tether.
According to Angela Ang, senior policy advisor at blockchain intelligence firm TRM Labs, the commercial viability of these blockchains ultimately depends on their ability to offer unique services, such as speed, security, cost, or interoperabilitywhich are not already present in the ecosystem.
Tether’s decision to remain “blockchain neutral” indicates the company’s focus on ensuring widespread adoption and usability of USDT rather than tying its stablecoin to a specific blockchain network.
This approach is in line with Ardoino’s view that blockchains are increasingly becoming a commodity and that Tether’s priority is to provide a reliable and secure stablecoin that seamlessly integrates with various blockchain platforms.
At the time of writing, the total cryptocurrency market cap has jumped to $2.135 trillion from Friday’s opening value of $2.09 trillion, in response to Federal Reserve Chairman Jerome Powell’s recent speech, which hinted at further interest rate cuts.
Featured image by DALL-E, chart by TradingView.com
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