Tether Drops Plans For Its Own Blockchain, While Sony Launches New Blockchain Network

On Aug 24, 2024

To strengthen the role of stablecoin use at the global level, Tether has decided to abandon its blockchain launch plan. Meanwhile, other players are confidently launching new blockchain networks.

Tether, the company behind the world’s largest stablecoin by market capitalization (USDT), has decided to abandon its plans to launch a proprietary blockchain network. Originally, Tether aimed to introduce its own blockchain to increase transparency, improve transaction speed, and reduce costs. However, the company has now shifted its focus to enhancing the stability and efficiency of its existing operations across multiple blockchains.

A Tether spokesperson stated that after careful consideration, the company concluded that expanding and improving its current network integrations would better serve its users and partners. Tether’s USDT is currently operational on several major blockchains, including Ethereum, Tron, and Binance Smart Chain, among others.

According to Bloomberg, Tether Holdings, the issuer of the stablecoin USDT, recently said that the company has abandoned plans to launch its own blockchain. As long as the highest level of security and sustainability can be ensured, it does not mind which blockchain USDT is…
— Wu Blockchain (@WuBlockchain) August 23, 2024

By focusing on optimising its existing network presence, Tether aims to ensure that its stablecoin remains reliable and efficient for global users. The decision to abandon the proprietary blockchain launch is seen as a move to strengthen Tether’s role within the current blockchain ecosystem rather than trying to compete with it directly.

Stablecoin firms & Blockchain networks

USDT, the largest stablecoin, is already widely used on top scalable blockchain networks such as BSC (Binance Smart Chain) and Tron. It is worth noting that the second-largest stablecoin, USDC (issued by Circle), also has no plans to launch its own native blockchain network. USDC is currently available on more than 15 blockchain networks.

Although Coinbase is a partner of Circle and its Base network could be considered a native blockchain for USDC, Circle has not officially announced any plans to launch a new blockchain network.

This shows that stablecoin firms are focusing on perfecting the management of their financial operations for their respective stablecoin businesses, rather than concentrating on launching new networks.

Blockchain Networks: A New Opportunity?

In the last couple of years, many companies have shown interest in launching blockchain networks. For example, the American crypto exchange launched its Layer-2 blockchain network Base.

Recently, Sony announced the launch of a new Layer 2 blockchain network aimed at enhancing scalability and reducing transaction costs. This new network is designed to support Web3 applications, signalling Sony’s increased involvement in Crypto & blockchain technology and digital innovation.

Read also: Pro-Bitcoin Politician Robert F. Kennedy Gives Up His Candidacy, Supports Republican Presidential Candidate Trump