Tether Co-Founder Launches Distinct Stablecoin, Rivaling USDT
A co-creator of Tether (USDT), the leading stablecoin globally, is reportedly spearheading a new stablecoin venture.
Reeve Collins, instrumental in establishing Tether along with Brock Pierce and Craig Sellars, is now backing Pi Protocol. This decentralized stablecoin project is slated to launch on the Ethereum and Solana blockchains later this year.
Pi Protocol’s innovation lies in USP, a stablecoin generated via smart contracts – self-executing programs that facilitate transactions between exchanges and market makers. Distinct from conventional stablecoins, Pi incentivizes its miners with USI, a token that produces yield. The stablecoin’s value will be supported by tangible assets like bonds, differentiating it from Tether’s USDT, which is pegged 1:1 to the US dollar and generates profits through reserve investments.
“We view Pi Protocol as the next stage in stablecoin development,” stated Collins. “Tether has successfully proven the demand for stablecoins. However, they retain all the profits. We believe that after a decade, the market is ripe for evolution.”
Collins, who served as Tether’s initial CEO from 2013 to 2015 before its acquisition by Bitfinex operators, has since co-founded several businesses, including the NFT platform BLOCKv. Reflecting on his decision to sell Tether, he commented: “I’ve been a strong advocate for Tether over the years; it’s a remarkable achievement we created.”
Pi Protocol will operate with decentralized governance via its native token, USPi. Holders of the governance token will receive a portion of the platform’s earnings from sources like stablecoin minting yields. Users will also have voting power on protocol decisions including risk management, collateral strategies, and revenue allocation. The project’s team and advisors have secured 25% of the governance token supply, and a presale is currently in progress.
*This is not financial advice.
