Stablecoin Showdown: Will USP Steal Tether’s Thunder? 💰💥

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Hold onto your wallets, folks! Reeve Collins, the co-founder of Tether, is back in the game, and this time he’s launching a decentralized stablecoin that’s ready to rumble with USDT! 🎉 In a world where stablecoins are popping up like popcorn at a movie theater, Collins is stepping into the ring with his shiny new toy: the USP! 🍿

According to Bloomberg (the oracle of all things crypto), this bad boy is set to debut on the Ethereum and Solana blockchains in the second half of 2025. So, mark your calendars, folks! 🗓️

Now, here’s the kicker: Pi will use smart contracts to mint this USP stablecoin, and minters will earn yields in the form of another token called USI. Sounds fancy, right? It’s like getting a bonus for just showing up! 💸

Competing With Tether

This stablecoin is not just a pretty face; it’s backed by yield-bearing real-world assets like bonds and is over-collateralized with Treasuries and money-market funds. Because who doesn’t want their stablecoin to have a solid resume? 📜

“We view Pi Protocol as the evolution of stablecoins,” Collins told Bloomberg, probably while wearing sunglasses indoors. 😎

“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.”

Collins, who was the big cheese at Tether from 2013 to 2015, sold Tether to the Bitfinex operators back when its market value was less than $1 billion. Now, it’s strutting around with a market cap of over $140 billion! Talk about a glow-up! 💪

Pi’s CEO, Bundeep Singh Rangar, chimed in, “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,” he added, probably while sipping a fancy latte. ☕

Regulations are shifting. Yield-bearing stablecoins will be the next trillion-dollar asset class!

— Pi Protocol (@piprotocol) February 18, 2025

And guess what? Stablecoins got a green light this year with the election of US President Donald Trump. In his first days in office, he signed an executive order promoting US dollar-pegged stablecoin adoption. Because nothing says “I love stablecoins” like a presidential signature! 🖊️

Coinbase CEO Brian Armstrong is also looking to take a bite out of Tether’s market share. During a recent earnings call, he declared that the firm aims to make USDC “number one,” but let’s be real, that’s a “stretch goal.” Good luck with that, Brian! 🍀

A Crowded Space

USP is diving into a pool filled with sharks! 🦈 Tether currently holds a whopping 60% of the market share from a supply of $141 billion. Circle’s USDC is trying to swim alongside with a market share of 24%, while the third-largest stablecoin, USDS (formerly DAI), is just treading water with almost 4%. Talk about a crowded lifeboat! 🚤

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2025-02-24 01:50