Tether CEO Paolo Ardoino: No Plans for Proprietary Blockchain

Tether, the issuer of the popular stablecoin USDT, has no intentions of developing its own blockchain, according to CEO Paolo Ardoino. In an interview with Bloomberg, Ardoino confirmed that while Tether had previously considered creating a proprietary network, they ultimately decided against it.
“We are very adept with technology, but launching a native blockchain might not be the right move,” Ardoino stated. “The market already has other good solutions.”

Market Saturation and Effective Alternatives

One of the primary reasons for this decision is the saturated market. According to data from DeFiLlama, five out of more than 300 blockchains control about 86% of the total value locked (TVL) in the ecosystem. Specifically, Ethereum accounts for over 57% of these locked funds. Despite high fees, Ethereum continues to dominate, largely due to its status as the second-largest cryptocurrency by market capitalization and its flexibility for developers in creating smart contracts.

Expert Opinions on Blockchain Viability

Angela Ang, a senior advisor at TRM Labs, believes that for a blockchain to succeed, it must offer something unique to the market. “Blockchain creators and issuers benefit from activity on different platforms. However, their business viability depends on whether they can bring something unique to the ecosystem, be it speed, security, transaction costs, compatibility, or something else,” Ang said.

Tether’s Current Activities and Future Plans

Over the past year, Tether has authorized the issuance of 33 billion USDT on Ethereum and Tron networks. The company reported a profit of $5.2 billion in the first half of the year. Tether regularly reinvests its profits into projects in artificial intelligence (AI), mining, data infrastructure, and education. According to a recent report, the USDT issuer plans to invest more than $1 billion in various deals by the end of 2024. In collaboration with the non-profit TON Foundation, Tether has announced over 100 partnerships with regional firms.
Tether’s strategy of leveraging existing blockchain solutions while focusing on reinvestment and partnerships highlights its adaptive approach in a rapidly evolving market. This approach not only ensures the company’s stability but also contributes to the broader crypto ecosystem’s growth and innovation.