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The crypto industry recently anticipated a blockchain launch from Tether, the stablecoin supplier. However, the rumours are put to rest now by the company CEO.
Tether’s CEO, Paolo Ardoino, recently shared insights on the company’s plans, saying Tether will not launch its own blockchain soon.
He announced this on X (Twitter), saying neutrality is a key principle for Tether. “Unstoppable TogETHER, our motto, underlines our interest to partner with other companies and communities,” Ardoino tweeted. He emphasized that Tether is more focused on collaboration than controlling everything in the space.
Tether CEO Drops All Rumours to Build Blockchain
Ardoino addressed the rumour of a Tether blockchain. He said that Tether is not constructing any blockchain but rather different independent Layer 2 (L2) solutions that are facilitating Tether’s stablecoin, $USDt, for the cost of transactions.
Tether’s neutrality and adaptability will be its guiding principles, it will let others build networks while it concentrates on partnerships and innovative development.
On November 1, Tether made a significant announcement regarding a new stablecoin pegged to the Dirham. The stablecoin will be launched on the TON Blockchain, backed by a partnership between Phoenix Group and Green Acorn. The announcement was made at the Dubai event Gateway 2024.
Tether has now picked the TON Blockchain which is backed by the well-known messaging application Telegram which is extensively used in the Middle East. The new Dirham stablecoin is designed for users’ demands within the region.
Ardoino also shared plans for two new products this month, calling the initiative “Tethember.” However, he mentioned that the release dates have been delayed due to the upcoming U.S. elections. “Any product announcement done this week would likely get buried by-election noise,” Ardoino explained.
Why is Tether Not Launching its Own Blockchain?
Ardoino explained why Tether would not launch its own blockchain. According to him, the blockchain space is saturated. In his assessment, blockchains will eventually turn out to be a “commodity,” which means many of them will offer similar features and functions.
For that reason, he reiterated that Tether’s focus is on its stablecoin development and partnerships with trustworthy blockchains, not on launching its own.
Ardoino’s remarks further reinforce the notion that Tether will always remain an agile market player. By not introducing a new blockchain, it can better focus on developing USDT and continuing its expansion into new territories, including the Middle East.