Tether co-founder launches new stablecoin
February 19, 2025
The co-founder of Tether is launching a new decentralized asset, USP, which will compete with Tether (USDT) and other leading stablecoins. The project aims to attract users by offering yield generation backed by bonds and other real-world assets.
Collins now leads Pi Protocol, a decentralized project set to launch on the Ethereum and Solana blockchains by the end of 2025.
How does the new stablecoin work?
Pi Protocol utilizes smart contracts to issue the USP stablecoin in exchange for the yield-bearing USI token. According to sources, USP is backed by real assets, including bonds, ensuring stability and passive income. While the name suggests a peg to the U.S. dollar, details about the supported currencies remain unknown.
The evolution of stable assets
Collins and his partners created Tether in 2014, selling it to Bitfinex a year later. Since then, USDT has grown from under $1 billion to $142 billion, becoming the market leader. Even before announcing Pi Protocol, Collins spoke about the potential of yield-bearing stablecoins, highlighting their appeal to investors seeking interest from fiat-backed digital assets.