Bitrabo Editorial
Paolo Ardoino, the CEO of Tether, the issuer of the largest stablecoin USDT in the crypto market, has provided insights into the speculation surrounding Tether potentially introducing its blockchain.
Decision Against Building Own Blockchain
In an interview with Bloomberg News, Paolo Ardoino acknowledged Tether’s technological prowess but highlighted that blockchains are rapidly becoming a common feature in the market. He emphasized that launching a blockchain might not be the optimal move, considering the existing quality of blockchain networks available.
Bloomberg highlighted that Tether’s choice not to create its blockchain is significant, given its prominent position in the crypto market with a market capitalization of $115 billion. USDT is widely used as a stablecoin and plays a vital role in crypto trading activities, prioritizing the stability and security of its stablecoin over the potential advantages of a proprietary blockchain network.
Big 5 Blockchains in Control
The report also discusses the increasing diversity and competitiveness in the blockchain ecosystem, with data indicating that the top five blockchain networks hold about 86% of the total locked value across various chains. These major blockchains include BNB Smart Chain, Ethereum, Polygon, TRON, and Avalanche, showcasing a substantial amount of Dapps and contracts issued on these networks.
Ethereum remains the dominant blockchain in terms of usage, having a significant portion of the total locked value across all networks. Other blockchains like TRON, responsible for handling nearly half of the USDT supply, have proven to be viable alternatives for Tether’s stablecoin.
Angela Ang, a senior policy adviser at TRM Labs, emphasized that the viability of these blockchains depends on their unique selling points such as speed, security, cost-effectiveness, and interoperability, which set them apart in the ecosystem.
Tether’s stance as being “blockchain agnostic” underscores its commitment to ensuring widespread adoption and usability of USDT across various blockchain platforms, aligning with Ardoino’s belief that blockchains are increasingly becoming standardized, with Tether prioritizing a reliable and secure stablecoin that seamlessly integrates with different blockchain systems.
The total cryptocurrency market capitalization has seen an increase in response to Federal Reserve Chairman Jerome Powell’s recent hints at further interest rate cuts.