Here is Why Tether Won’t be Launching Their Own Blockchain

Tether, the issuer of the leading stablecoin USDT, has decided against launching its own blockchain.

This decision is attributed to a saturated market and strategic considerations, according to Paolo Ardoino, the company’s CEO. In a discussion with Bloomberg News, Ardoino highlighted that the current blockchain ecosystem is already well-served by existing technologies, suggesting that launching a new blockchain might not be the most effective approach given the high quality of available options.

Ardoino emphasized that Tether’s focus remains on ensuring that USDT maintains its effectiveness and security through existing blockchain platforms, which are utilized as “transport layers.” This approach reflects the company’s satisfaction with the current infrastructure and its strategy to leverage existing blockchains for peak performance of its stablecoin.

Additionally, on August 19, Tether expanded USDT to the Aptos blockchain. This move is intended to lower transaction fees and enhance global accessibility. The integration aims to take advantage of Aptos’ speed and scalability, providing users with minimal transaction costs. Tether’s decision to integrate with Aptos follows significant activity on the blockchain, which set a record with 157 million transactions in a single day in May.

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Furthermore, Tether is making strides in the Middle East by collaborating with Phoenix Group and Green Acorn Investments to launch a dirham-backed stablecoin. Announced on August 21, this new stablecoin will be fully supported by liquid UAE reserves and adhere to Tether’s standards of transparency and robustness. This initiative is expected to offer a cost-effective way for users to engage with the UAE dirham in digital transactions.

Alexander Stefanov