Tether CEO denies rumors of Tether building a blockchain

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As a seasoned analyst with years of experience in the cryptocurrency market, I find Paolo Ardoino’s stance on Tether not developing an official blockchain at this time to be a strategic move. His focus on partnerships and support for existing layer 2 networks indicates a deep understanding of the current market saturation and the importance of decentralization.

According to Paolo Ardoino, CEO of Tether, there are currently no intentions by Tether to create an official blockchain, as he recently clarified, addressing speculations about the hypothetical Tether Chain.

On November 4th, in a post on their platform, I, as an analyst, shared that Paolo Ardoino, CEO of Tether, refuted speculations suggesting Tether (USDT) was developing an official blockchain. Instead, he emphasized that Tether is prioritizing collaborations with various companies and communities, opting to avoid centralization in their operations.

According to Ardoino, there’s been talk circulating about a potential Tether Chain. However, it’s important to note that at the moment, Tether has no plans to develop an official blockchain.

He went on to state that Tether has backed the integration of various independent layer 2 networks in order to support the gas fees needed for USDT.

Cardano‘s team suggests a potential upcoming product release that was initially planned near the U.S Election date. However, Tether opted to delay its launch by a week to minimize confusion amidst the election-related commotion.

In another discussion, Ardoino pointed out why Tether has been hesitant to dive into the blockchain arena. He argues that creating a Tether blockchain could potentially lead to increased centralization, emphasizing the significance of neutrality.

Ardoino emphasized that our slogan ‘Unstoppable TogETHER’ signifies our preference for collaborating with other businesses and communities instead of aiming for a monopoly by controlling everything.

During an interview with Bloomberg in August 2024, Ardoino expressed that the blockchain market at the time was already quite congested. He further speculated that in the future, blockchains might be viewed as more of a common or everyday item.

Ardoino mentioned that creating our own blockchain may not be the best course of action, as there are already excellent options available.

Currently, Ethereum, TRON, and Solana are the top three blockchains in terms of total value locked as per data from DeFi Llama. Ethereum leads the pack with a staggering $47.55 billion Total Value Locked (TVL) and over 381,000 active addresses. Following closely is TRON at second place with a TVL of $6.81 billion and approximately 1.71 million active addresses. Solana rounds off the top three with a TVL of $5.92 billion and nearly 4.3 million active addresses.

On November 1st, Tether disclosed its Q3 2024 financial results, marking several unprecedented peaks, such as a staggering equity of $14.2 billion and a consolidated total assets value of an impressive $134.4 billion. The Q3 report from Tether additionally highlighted a surging interest in USDT stablecoins, with circulation expanding to almost 30% in the year 2024. Moreover, it was revealed that Tether has minted an additional $27.8 billion worth of tokens during this year.

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2024-11-04 14:39