The packed market and strategic alignment with existing platforms are the reasons for Tether’s decision to refrain from launching its blockchain.
Citing market saturation and strategic concerns, Tether, the issuer of the world’s largest stablecoin, USDT, has determined to forsake its own blockchain launch.
Paolo Ardoino, the CEO of the company, stated in an interview with Bloomberg News that the posture is derived from an analysis of the blockchain sector and a congested market.
Ardoino suggested that the company’s decision to establish a blockchain may not be the most appropriate course of action, as the public already has access to “very excellent blockchains.”
Ardoino observed in the interview that blockchains are becoming more commoditized, with numerous platforms providing comparable functionality to users.
As a result, he clarified that the firm is content with the remaining blockchain as “agnostic” as long as USDT trading maintains the highest level of sustainability and security by utilizing blockchains as “transport layers.”
Ardoino clarified in a YouTube interview with Unlock Blockchain that Tether is “a product market fit.” Tether introduced USDT on the Aptos blockchain on August 19 in order to enhance global digital currency accessibility and reduce transaction costs.
The company intends to capitalize on Aptos’ scalability and quickness by incorporating the new integration to offer consumers petroleum fees that are “only a fraction of a penny.”
The announcement by Tether is in response to the Aptos blockchain, which experienced substantial growth and a “record-breaking” 157 million transactions in a single day in May.
On August 21, Tether formed a partnership with Phoenix Group and Green Acorn Investments of the United Arab Emirates to release a stablecoin secured by dirhams.
The objective of the new stablecoin is to digitally represent the dirham currency, which is “completely supported by liquid UAE-based reserves” and adheres to Tether’s “transparent and robust standards…”
The goal of this expansion into the UAE market is to provide consumers with a cost-effective way to access “the benefits of the AED.”
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