Tether Holdings, the company behind the world’s largest stablecoin USDT, has opted not to pursue the creation of its own blockchain, citing market saturation as a key factor in its decision.
Paolo Ardoino, CEO of Tether, explained the rationale in a recent interview, stating, “We excel in technology, but blockchains are becoming commoditized. Launching our own blockchain might not be the right move when there are already excellent options available.”
Ardoino emphasized that Tether views blockchains primarily as “transport layers” and places a greater focus on security and sustainability rather than developing proprietary technology.
According to data from DeFiLlama, the top five blockchains dominate approximately 86% of the ecosystem’s total value locked (TVL) out of 306 chains. Ethereum leads with a TVL of $87.7 billion out of a total $133.2 billion, while TRON, another major blockchain, manages $8.1 billion in TVL and supports 49% of the USDT supply.
Ardoino highlighted that in such a crowded market, even groundbreaking technology can struggle to differentiate itself. Therefore, launching another blockchain would likely add little value.
Tether remains focused on ensuring that its stablecoin operates on the most secure and efficient platforms available. Ardoino concluded that as long as these blockchains provide top-tier security and sustainability, Tether sees no need to introduce its own blockchain, opting instead to keep things straightforward.
