Tether, the company that issued the stablecoin USDT, decided not to launch its own cryptocurrency network due to market saturation and strategic reasons.
This is what the company's CEO, Paolo Ardoino, explained in an interview with Bloomberg News. “We are very good at technology, but I think networks will become almost a commodity in the future,” he said.
In that sense, he said that he is “happy” that his stablecoin maintains its “agnostic” nature, that is, not being committed to a single network or platform. USDT can operate in different environments. Ardoino believes that the most important thing is to focus on the security in which USDT trading is carried out. He explained:
“Launching a cryptocurrency network might not be the right decision. There are very good ecosystems and for us they are just transport layers. Launching a blockchain ourselves might not be the right decision. There are very good blockchains.”
Paolo Ardoino, CEO of Tether.
The analysis made by the owner of the stablecoin issuing firm with the highest market capitalization is due to the fact that there are 5 ecosystems that control around 86% of the total value of blocked assets (the money deposited in each of them), according to data from DefiLlama.
TVL of the main networks. Source: DefiLlama.
Ethereum, the ecosystem created by Vitalik Buterin, has a TVL of approximately $50 billion, according to data from DefiLlama. The list is completed by Tron, founded by Justin Sun, with more than $8,000 and Solana with $5 billion.
Ethereum has a TVL of over $50 billion. Source: DeFiLlama.
For a cryptocurrency network to be used, it is important that it has high operating speed, low fees, use cases, and security.
In many cases, these environments end up with limited use and are unable to attract a user base. Many of these launches are purely commercial issues rather than providing solutions to a specific problem.
Tether, for its part, chooses to get off the bandwagon of launching “ blockchains ” for everything and prefers to focus on the security and sustainability of USDT within existing ecosystems.
