Tether Co-Founder Launches Rival Stablecoin Pi Protocol

The former CEO of stablecoin giant Tether, Reeve Collins, is backing a new USDT rival, Pi Protocol, which aims to launch a yield-bearing stablecoin, USP, later this year. Pi Protocol, co-founded by Collins, plans to roll out the stablecoin on the Solana (SOL) and Ethereum (ETH) blockchains.

Pi Protocol aims to differentiate itself from other stablecoin projects by being more decentralized and offering users a larger share of the pie. The USP stablecoin will be backed by bonds and other yield-bearing real-world assets, with smart contracts used to execute transactions and mint the stablecoin.

Collins, who was a co-founder of Tether, expressed his support for the new stablecoin project, stating, "I very much supported Tether over the years, it’s an extraordinary invention that we’ve developed... We view Pi Protocol as the evolution of stablecoins. Tether has been extremely successful in showcasing demand for stablecoins. But they keep all the yield. We believe 10 years later the market is really ready to evolve."

Pi Protocol's CEO, Bundeep Singh Rangar, highlighted the project's focus on non-correlated, mid- to high yield, low-risk assets. He explained, "You want assets that are non-correlated to crypto that are mid- to high yield, low risk. We have a mechanism that assesses the quality of the asset. They are ones that are vetted on their loss ratio and origination of where they are coming from."

The launch of Pi Protocol's USP stablecoin is expected to add competition to the stablecoin market, with a focus on decentralization and yield-bearing assets. As the crypto market continues to evolve, projects like Pi Protocol aim to address the growing demand for stablecoins that offer more than just price stability.