Tether Abandons Plan to Build Its Native Blockchain

Tether has abandoned its plan to build a native blockchain. The leading stablecoin issuer has teased the idea for some time but has decided against it, its CEO, Paolo Ardoino, said in an interview with Bloomberg.

“We are very good in technology, but I think blockchains will become almost a commodity in the future,” Ardoino said concerning Tether’s decision to discard its blockchain development plan.

The change of heart among Tether’s stakeholders resulted from carefully considering the recent concepts surrounding blockchain technology. According to Ardoino, there are already good networks in the crypto sector; hence, further overcrowding the space was unnecessary.

“Launching a blockchain ourselves might not be the right move. There are very good blockchains,” Ardoino added.

Blockchain Monopoly

Data from DefiLlama dictates a form of monopoly in the blockchain space. According to the data, the top five networks control about 86% of cryptocurrency’s total value locked (TVL). There are currently 306 chains operating in the industry.

Ethereum has exerted its dominance among other chains, holding over 65% of the sector’s TVL. The home to the second-largest crypto asset by market cap has a TVL of $87.7 billion, a greater part of the $133.2 billion in the crypto market.

Another area of monopoly was in the amount of USDT held among blockchains. Justin Sun’s Tron network has over 49% of USDT’s supply. The network’s transactional acumen saw it process a large chunk of Visa’s settlements, its Q4 report showed.

Hence, Tether has decided to chalk off the initial decision to battle other projects in the blockchain business and remain “agnostic.” Ardoino added that they see blockchains as just a means of transportation for cryptocurrency.

Tether has developed expertise in partnering with regulators in various countires to create stablecoins pegged to their local currencies. The firm recently announced the launch of a dirham-pegged stablecoin after creating such products in Chinese yuan, Mexican pesos, euros, and gold.