Tether’s decision to hold off on launching its blockchain is due to the crowded market and platforms’ strategic alignment.
Regarding market saturation and strategic considerations, the company behind the biggest stablecoin in the world, USDT, has decided against launching its blockchain.
In an interview, the company’s CEO, Paolo Ardoino, told Bloomberg News that the position was taken after studying the blockchain industry and a crowded market.
Since there are already “very good blockchains” accessible to the general public, Ardoino suggested that the company’s decision to establish a blockchain might not be the “right move.”
Saturation of the market
During the interview, Ardoino mentioned that many blockchains are starting to offer comparable features to users, making them more and more commodities.
Using blockchains as “transport layers,” he clarified that the company is content with the remaining blockchain as “agnostic” as long as USDTUSDT$1.00 trading maintains maximum sustainability and security.
During an Unlock Blockchain YouTube interview, Ardoino clarified that Tether is “a product market fit.”
“We created the entire stablecoin market in 2014. There was no stablecoin before us.”
Extension of Tether Aptos
Tether introduced USDT on the Aptos blockchain on August 19 to lower transaction costs and increase the accessibility of digital currency worldwide.
The company hopes to use the new integration to use Aptos’ speed and scalability to offer users gas fees that come to “just a fraction of a penny.”
Following the Aptos blockchain, which saw tremendous growth and a “record-breaking” 157 million transactions in a single day in May, Tether made its announcement.
Dirham stablecoin launch
Tether launched a stablecoin backed by dirhams on August 21 in collaboration with Phoenix Group and Green Acorn Investments in the United Arab Emirates.
The new stablecoin will follow Tether’s “transparent and robust standards” and attempt to digitally replicate the dirham, “fully backed by liquid UAE-based reserves.”
This entry into the UAE market is anticipated to provide consumers with an affordable way to obtain “the benefits of the AED.”