Reeve Collins, co-founder of Tether, is preparing to return to the stablecoin market with a new project called USP, part of the Pi Protocol. Unlike USDT, USP promises to provide automatic interest for holders, thanks to a mechanism tied to real assets like bonds.
What makes the stablecoin USP different?
According to Bloomberg, the Pi Protocol will operate on Ethereum and Solana, allowing users to create #USP through smart contracts. When depositing assets into the protocol, users will receive USI, a token that provides yield. USP may be pegged to the USD, but details about this mechanism have yet to be announced.
Collins believes that yield-bearing stablecoins will attract investors who want to keep their assets stable while also earning profits. This is a different approach from Tether's USDT, which only maintains its value without directly generating profit for users.
Reeve Collins – from Tether to Pi Protocol
Reeve Collins is one of the founders #Tether but sold the project to Bitfinex in 2015. Since then, USDT has grown from under 1 billion USD to over 142 billion USD, becoming the largest stablecoin in the world.
After leaving Tether, Collins continued to participate in many blockchain projects, such as the NFT platform BLOCKv, which raised 22 million USD in its ICO in 2017, or the game startup Pala Interactive, which was sold for 70 million USD. This time, he is back in the stablecoin race with USP, directly competing with giants like USDT, USDC, USDe, and DAI.
The stablecoin market is becoming increasingly competitive
Currently, stablecoins are a cornerstone of the crypto market, with a total circulating value of over 225 billion USD. In 2024, Tether generated 13 billion USD in profit, expanding into agriculture, renewable energy, and football.
Research from ARK Invest shows that stablecoins processed 15.6 trillion USD in transactions in 2024, even surpassing Visa and Mastercard. With the arrival of USP, the stablecoin battle could be more intense than ever! 🚀 #anhbacong