Tether co-founder aims to rival USDT with yield-bearing USP
Reeve Collins, a co-founder of Tether (CRYPTO:USDT), is spearheading Pi Protocol, a decentralised project set to launch a new stablecoin, USP, on the Ethereum (CRYPTO:ETH) and Solana (CRYPTO:SOL) blockchains in the latter half of 2025.
This initiative marks Collins' return to the stablecoin market, intending to challenge Tether's dominance with a yield-bearing alternative.
The USP stablecoin will be minted using smart contracts and is planned to be backed by real-world assets like bonds.
This approach differs from Tether's USDT, which is pegged to the U.S. dollar and generates profits through reserve investments.
Minting USP will reward users with USI tokens.
Pi Protocol also involves USPi, a yield-bearing non-fungible token (NFT) that gives holders a portion of the platform's revenue and voting rights on risk parameters and collateral policies.
"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," Collins said.
Collins co-founded Tether in 2013 and served as its CEO from 2013 to 2015.
The Pi Protocol will operate under a decentralised governance model through its native token, USPi, where governance token holders will receive a share of the platform’s revenue from sources such as stablecoin minting yields.
The project team and advisors have secured 25% of the governance token supply, and a presale is currently underway.
At the time of reporting, the Tether (USDT) price was $0.9995.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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