Tether CEO quashes speculation of launching a Tether blockchain ‘at this time’ News ▸ Tether ▸ Stablecoins
Tether CEO quashes speculation of launching a Tether blockchain ‘at this time’
Tether favors partnerships and supports integration across multiple networks instead of centralizing with its own blockchain.
2 min read
Updated: Nov. 4, 2024 at 10:32 am UTC
Credit: Tether Holdings Ltd.
Tether CEO Paolo Ardoino has dismissed recent speculation about the company’s plans to launch a proprietary blockchain network.
In a Nov. 3 post on X, Ardoino clarified that Tether does not intend to create its blockchain. He emphasized the company’s position by writing:
“Tether is not planning to build an official blockchain at this time.”
Tether, the issuer of USDT—the world’s largest stablecoin with a market cap of over $120 billion—operates across over ten blockchain networks. These include Ethereum, Solana, TON, Aptos, and Algorand.
Why Tether is not launching a blockchain network
Ardoino explained that Tether values “neutrality” and prefers not to centralize its operations through a proprietary blockchain. Instead, the company is focused on supporting USDT integration across existing networks, including support for gas fees.
Ardoino furthered Tether’s primary interest in partnerships with other companies and communities. He emphasized that the company’s mission is “Unstoppable TogETHER,” aligning with a collaborative approach rather than attempting to consolidate control under its chain.
Meanwhile, Ardoino didn’t rule out the possibility of launching a blockchain in the distant future. However, he noted that his statement was an attempt to “not exclude any possibility.”
Blockchain networks
Tether’s stance contrasts with a recent trend in the industry, where more firms are developing their own blockchain networks.
Centralized exchanges like Coinbase and Kraken have entered the space with their Ethereum layer-2 networks, Base and Ink, respectively. Similarly, the DeFi platform Uniswap introduced its scaling solution, Unichain, and the identity-focused crypto project World launched World Chain.
At the same time, other DeFi players like Aave are exploring network development tailored to their user communities.
However, critics like Sonic Labs co-founder Andre Cronje caution against the rush to build new networks. He highlights challenges such as high infrastructure costs, fragmented liquidity, and limited developer support, suggesting these factors may inhibit the widespread adoption of these proprietary networks.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Ethereum
$3,478.57
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$195.252
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Aptos
$10.2507
Aptos is an FTX-backed layer-1 blockchain which was developed by ex-Meta employees.
Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Kraken
Kraken is a San Francisco-based digital asset exchange in euro volume and liquidity that trades various currencies, including Canadian dollars, US dollars, British pounds, and Japanese yen.
Designed with simplicity in mind, the Uniswap protocol provides an interface for seamless exchange of ERC20 tokens on Ethereum.
Paolo Ardoino joined Bitfinex at the beginning of 2015 and now serves as Chief Technology Officer.