Amid speculation that Tether, issuer of the largest stablecoin on the crypto market, USDTcould launch its blockchain, the company’s CEO Paolo Ardoino has addressed the rumors with key details.
Tether abandons plans to launch its own blockchain
In a interview Ardoino acknowledged Tether’s technological capabilities, 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 almost a commodity in the future. Launching a blockchain yourself might not be the right move. There are very good blockchains.
According to Bloomberg, the stablecoin giant’s decision not to build its blockchain network is notable given Tether’s dominant position in the crypto market. With a market capitalization At $115 billion, USDT is the most widely used stablecoin and a key on-ramp and off-ramp for crypto trading.
Ardoino’s comments, however, suggest that Tether is prioritizing the security and sustainability of its stablecoin over the potential benefits of a proprietary blockchain. “For us, blockchains are just transport layers,” he said.
The Dominance of the Big 5 Blockchains
The report further notes that the block chain The ecosystem is becoming increasingly diverse and competitive. Data from DeFiLlama shows that the five largest blockchain networks control approximately 86% of the total locked value (TVL) across 306 chains.
According to DappRadarr, these are the BNB Smart Chain, Ethereum, Polygon, TRON, and Avalanche, with a significant amount of decentralized applications (Dapps) developed and contracts issued on the chains. facts.
Nevertheless, Ethereum, the leading blockchain in terms of usage, accounts for $87.7 billion in total value locked out of $133.2 billion across all networks. Other blockchains, such as TRON, which handles 49% of the USDT supply, have also established themselves as viable alternatives to Tether’s stablecoin.
According to Angela Ang, senior policy advisor at blockchain intelligence firm TRM Labs, the business viability of these blockchains ultimately depends on their ability to offer unique features such as speed, security, cost or interoperabilitythat are not yet present in the ecosystem.
Tether’s decision to remain “blockchain agnostic” suggests the company is focused on ensuring the broad adoption and usability of USDT rather than tying its stablecoin to a specific blockchain network.
This approach aligns with Ardoino’s vision that blockchains are increasingly becoming a commodity and that Tether’s priority is to provide a reliable and secure stablecoin that seamlessly integrates with different blockchain platforms.
At the time of writing, the total market cap of cryptocurrencies has increased from $2.09 trillion on Friday to $2.135 trillion, in response to Federal Reserve Chairman Jerome Powell’s recent speech, which hinted at further rate cuts.
Main image of DALL-E, chart from TradingView.com