Paolo Ardoino Addresses Tether Chain Rumors
Paolo Ardoino, the CEO of the stablecoin issuer Tether (USDT), has officially dismissed recent speculations regarding the creation of an official Tether blockchain. In a post on the social media platform X, he clarified, “Tether is not planning to build an official blockchain at this time.” He attributed the confusion to various independent Layer 2 solutions that are currently in development to facilitate gas fees for USDT.
Commitment to Neutrality and Partnerships
In a follow-up post on November 4, Ardoino elaborated on the reasoning behind Tether’s decision not to pursue its blockchain project in the near future. He emphasized the importance of neutrality, stating, “One of the main reasons for which Tether won’t launch a chain anytime soon is that neutrality is very important.” Tether aims to focus on collaborations rather than centralizing control. Ardoino reiterated the company’s motto, “Unstoppable TogETHER,” highlighting the goal of partnering with various companies and communities.
New Developments and Product Launches
Tether recently made headlines with the announcement of its Dirham-pegged stablecoin, launched on the TON Blockchain. This initiative is a collaborative effort with Phoenix Group and Green Acorn, unveiled at the Gateway 2024 event in Dubai. Furthermore, Ardoino mentioned that Tether is preparing to launch two new products this month, branding it “Tethember.” However, he later indicated that the release timeline would be postponed by approximately a week due to the upcoming U.S. elections, noting that any announcements made during that period might be overshadowed.
Focus on Stability Amidst Competition
In a conversation with Cryptonews at the Plan B forum in Lugano, Switzerland, Ardoino expressed Tether’s commitment to maintaining its dominance in the stablecoin market amidst rising competition. He has articulated Tether’s perspective that the blockchain market is becoming oversaturated, suggesting that launching their blockchain may not be a strategic move. In his view, “blockchains will become almost a commodity in the future.”
Understanding Market Dynamics
Data from DefiLlama underscores the competitive landscape, noting that of the 322 chains present, the top five account for over 75% of the total value locked (TVL). Currently, Ethereum leads the charge with a TVL of about $47.64 billion, reflecting its dominant position with a 55.24% share. According to Ardoino, for a new blockchain to thrive, it must prioritize key factors such as high transaction speeds, low fees, and robust security. Tether’s strategy, therefore, embraces a blockchain-agnostic approach, aiming for the highest standards of security and sustainability while remaining open to various blockchain solutions in the industry.