According to a recent report by Suvashree Ghosh for Bloomberg News, in the fast-paced crypto space, where new blockchains seem to pop up daily, Tether, the company behind the world’s largest stablecoin, USDT, is taking a different path. Tether, however, has apparently decided not to launch its own blockchain, which bucks the current trend.
Tether’s CEO, Paolo Ardoino, shared the company’s reasoning in an interview with Bloomberg. He suggested that the blockchain market is becoming oversaturated and that, while Tether excels in technology, he believes blockchains will eventually become commoditized. Ardoino added that launching their own blockchain might not be the strategic move, given the abundance of excellent existing blockchains.
This decision may come as a surprise, considering Tether’s financial resources and the widespread use of USDT. However, the company appears unfazed by the potential challenges of entering an already crowded market. Data from DefiLlama, cited by Bloomberg, shows that a mere five blockchains control approximately 86% of the total value locked in decentralized finance protocols.
Ethereum, the leading blockchain in terms of commercial importance, boasts roughly $87.7 billion in total value locked (TVL) out of a total of $133.2 billion across all chains, according to DefiLlama.
Bloomberg highlights that factors like high speeds, low fees, strong security, and practical use cases are vital for a blockchain’s success. Ethereum’s early market entry, its adaptability for developers, and its position as the home of the second-most liquid token have contributed to its dominance, even with its relatively high fees.
Angela Ang, a senior policy advisor at blockchain intelligence firm TRM Labs, observes that the blockchain ecosystem has become multichain, with developers and issuers active across multiple platforms. Per the Bloomberg article, Ang emphasized that the business viability of these platforms depends on offering unique advantages, such as speed, security, cost, interoperability, or other novel features.
Tether’s CEO seems content with the company’s current “blockchain agnostic” approach, as long as the platforms where USDT is traded maintain high levels of security and sustainability. As Ardoino put it, “For us, blockchains are just transport layers.”
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