Tether Shifts Focus, Abandons Plans for Blockchain Amid Market Saturation

• Tether cancels plans to launch its blockchain, highlighting concerns about market saturation.
• CEO Paolo Ardoino emphasizes Tether’s focus on the security of existing blockchain networks.
• Tether expands USDT to the Aptos network and plans to launch a new stablecoin pegged to the UAE dirham.

Tether, the world’s leading stablecoin issuer, has decided not to develop its blockchain. In an interview with Bloomberg, Paolo Ardoino, Tether’s CEO, stated that launching a new blockchain may not be the best move, hinting at an already saturated market. 

Tether’s Blockchain Strategy

Tether’s decision highlights a strategic choice to focus on the security and sustainability of existing blockchains instead of creating a new one. Ardoino emphasized that high-quality blockchain systems are already in place, and the future could see blockchains becoming commodities.

Current market estimates from DefiLlama reveal that the total value locked (TVL) in blockchains nears $90 billion. Ethereum dominates with a 57% share, followed by Tron, Solana, and BSC. Tether recognizes the strength of these platforms and opts to reinforce its presence in the stablecoin market rather than introducing a new blockchain.

Tether’s Expansion Plans

Despite the expansion campaign at Tether remains an active process. The company has just unveiled that USDT will be available on the Aptos network and another stablecoin tied to the United Arab Emirates dirham (AED). Since sustained market recovery in March, more liquidity has been printed to the market, & 3 billion USDT was printed in the last week alone where Tether’s supply has surged by 14%.

Focusing on Existing Strengths

That is why Tether’s decision to skip its blockchain launch is intentional. Tether faces no risks associated with operating in the rapidly oversaturated blockchain space by not trying to build new platforms but developing and enhancing stablecoins on existing platforms instead. Such an approach underlines Tether’s desire to be secure and sustainable and to continue to be the market leader in the stablecoin space.