Former Tether Co-Founder Plans to Launch New Stablecoin on Ethereum and Solana

Reeve Collins, one of the original co-founders of Tether, is planning to launch a new stablecoin called UPS on the Ethereum and Solana blockchains by the second half of 2025. Collins’ new venture, the Pi Protocol, aims to rival Tether’s USDT, a stablecoin that expanded upon his initial idea during his time as CEO of the company.

Key Features of the Pi Protocol and UPS Stablecoin

Unlike USDT and Circle’s USD coin (USDC), the Pi Protocol presents the UPS stablecoin as a yield-bearing asset. This means that holders of the token will be able to earn passive income through tokenized real-world assets. The token is expected to operate similarly to other emerging market players, such as Ethena.

The UPS stablecoin will hold real-world assets (RWAs) like bonds for its reserves, similar to Tether’s strategy of holding U.S. Treasuries. Traders who mint UPS will earn USI as yield, while Pi’s governance structure revolves around the USPi token.

Revenue Sharing and Governance Structure

Collins stated that governance token holders will receive a share of Pi’s revenue. This unique approach sets the Pi Protocol apart from other stablecoin issuers, where the issuer controls all the proceeds.

Tether’s Former CEO Returns to the Stablecoin Market

Tether’s stablecoin and group were co-founded by Collins, Brock Pierce, and Craig Sellars four years after Bitcoin debuted. Collins was Tether’s first CEO from its inception in 2013 until 2015, when the iFinex group, owners of the Bitfinex crypto exchange, acquired the digital payment provider.

Tether’s USDT is now the largest stablecoin, with a $141 billion market capitalization, and is considered a crucial component of the global crypto trading ecosystem. Additionally, Tether reported $13 billion in net profit last year.

“Hindsight is always 20/20,” Collins said when asked if he regretted leaving Tether.

Tips for Investors and Traders

As the stablecoin market continues to evolve, investors and traders should keep an eye on emerging players like the Pi Protocol. Here are some key takeaways:

  • Look for stablecoins that offer yield-bearing assets and revenue sharing models.
  • Consider the governance structure and tokenomics of a stablecoin before investing.
  • Keep an eye on the market capitalization and trading volume of a stablecoin to gauge its liquidity and adoption.

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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