Reeve Collins, Co-Founder of Tether (USDT), Unveils New Stablecoin Project (Pi) Aimed at Yield Generation

The stablecoin market is expanding rapidly, and Pi Protocol arrives at a crucial time, with powerful players already in the field such as Tether (USDT)

Co-founder of Tether unveils new stablecoin to rival his own creation

Reeve Collins, co-founder of Tether (CRYPTO: USDT), has announced a new project that will directly compete with his own creation.

According to a report by Blockworks on Friday, Collins is set to launch a new stablecoin called Pi as part of a decentralized protocol later this year.

The new stablecoin will be called Pi and will be part of a decentralized protocol called the Pi Protocol.

The stablecoin is set to launch on both the Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) blockchains later this year.

What Makes Pi Stablecoin Unique?

The stablecoin will have a unique focus on generating yield from assets backed by bonds and other real-world assets.

The launch of the Pi Protocol aims not only to provide a stable and reliable stablecoin but also introduces an innovative approach: the possibility of earning yields by participating in USI, a token that serves as a bridge for the creation of Pi.

This is significant because most current stablecoins do not generate yield and are simply pegged to the value of assets like the US dollar.

Rising Competition In The Stablecoin Market

The stablecoin market is expanding rapidly and Pi Protocol arrives at a crucial time, with powerful players already in the field.

According to DefiLlama, the stablecoin market exceeds $225 billion, with USDT being the clear favorite, boasting over 63% of the market.

However, the competition has heated up in recent months, with USDC experiencing rapid growth and USDe surpassing Dai to claim the third spot in terms of market capitalization.

A Clear Vision For The Future Of Stablecoins

Having served as Tether's CEO from 2013 to 2015, Collins has a clear vision for his new project: to attract investors who are looking for not only stability but also yield on their assets.

The idea of yield-generating assets is a growing trend within the crypto space and the new stablecoin backed by tangible assets could be the key to bringing more people into the ecosystem.

The news adds that the new project will use smart contracts to facilitate the creation of Pi, adding an extra layer of transparency and security to the process.

The backing by bonds and real-world assets is also expected to instill a sense of trust that could appeal to traditional investors who still harbor skepticism towards cryptocurrencies.

While the report does not disclose any financial details about the Pi Protocol launch, this move by Collins is无疑 a direct challenge to traditional stablecoins.