Tether, the issuer of the world’s largest stablecoin, USDT, has stopped its blockchain launch, citing a crowded market and strategic alignment.
Paolo Ardoino, the company’s CEO, stated in an interview with Bloomberg News that the stance is derived from an analysis of the blockchain sector and a crowded 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 good blockchains.”
Market saturation
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.”
“We created the entire stablecoin market in 2014. There was no stablecoin before us.”
Tether launches on Aptos
Tether introduced USDT on the Aptos blockchain on August 19 to enhance global digital currency accessibility and reduce transaction costs.
The company intends to capitalize on Aptos’ scalability and speed by incorporating the new integration to offer consumers gas 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.
Tether introduces Dirham stablecoin
On August 21, Tether partnered with Phoenix Group and Green Acorn Investments of the United Arab Emirates to release a stablecoin secured by dirhams.
The new stablecoin aims to digitally represent the dirham currency, which is “fully backed 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.”
