Tether Scraps Plans to Launch its Own Blockchain for USDT

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Tether Holdings, the issuer of the world’s largest stablecoin USDT, has decided to scrap plans to launch its own blockchain.

The decision is driven by a saturated market and the principles of supply and demand, Paolo Ardoino, chief executive officer at Tether, said in an interview with Bloomberg News.

Ardoino explained that despite Tether’s strong technological capabilities, the market is already crowded with blockchains.

“We are very good in technology, but I think blockchains will become almost a commodity in the future,” Ardoino stated.

Ardoino further noted that launching a blockchain might not be the right move for Tether, especially when there are already several well-established and effective blockchains available.

With a market cap of $117 billion, USDT plays a crucial role in global crypto trading and remittances.

Given Tether’s vast resources, launching its own blockchain could have been a feasible endeavor.

According to Bloomberg, Tether Holdings, the issuer of the stablecoin USDT, recently said that the company has abandoned plans to launch its own blockchain. As long as the highest level of security and sustainability can be ensured, it does not mind which blockchain USDT is…

However, the decision to refrain from doing so is supported by market data that highlights the dominance of a few major blockchains.

According to DefiLlama, out of 306 existing chains, the top five control approximately 86% of the total value of assets locked.

Ethereum, the leading blockchain, boasts a total value locked (TVL) of $87.7 billion out of the $133.2 billion across all chains.

TRON, another significant player, manages $8.1 billion in TVL and supports 49% of USDT’s supply.

The success of a blockchain hinges on factors like speed, low fees, use cases, and robust security.

Ethereum’s dominance can be attributed to its first-mover advantage, flexibility for developers to build smart contracts, and its status as the home to the second-most liquid token, despite its relatively high