Former Tether CEO Hints at New Stablecoin to Challenge USDT’s Dominance

Reeve Collins, a co-founder and the first CEO of Tether (USDT), is planning to launch a new stablecoin to challenge USDT’s dominance in the market. The new project, called Pi Protocol, will introduce the UPS stablecoin, designed to offer a yield-bearing asset that sets it apart from USDT and Circle’s USD Coin (USDC).

The UPS stablecoin will be issued on both Ethereum and Solana blockchains by the second half of 2025. Unlike USDT, where the issuer retains all proceeds, Pi Protocol aims to generate passive income for token holders. The stablecoin will be backed by tokenized real-world assets (RWAs), like bonds, which will help it generate yield. This approach mirrors strategies used by some emerging players in the stablecoin space, such as Ethena.

Traders who mint UPS will receive USI as yield, and the governance of Pi Protocol will center around the USPi governance token. Collins stated that governance token holders will receive a share of Pi Protocol’s revenue, making it a more decentralized model compared to the fully centralized USDT and USDC.

Collins, who was instrumental in the creation of Tether, stepped down from his role as CEO in 2015 when Tether was acquired by the iFinex group, the owners of the Bitfinex exchange. Since leaving Tether, Collins has focused on ventures in the NFT and gaming sectors, including a gaming firm that raised $70 million.

The launch of Pi Protocol with UPS aims to provide an alternative to the heavily dominant Tether (USDT), which currently holds a market cap of around $141 billion, with Tether being a key player in the crypto ecosystem. This new stablecoin could add competition, especially in the growing demand for yield-bearing stablecoins and decentralized governance.

Collins has stated that while Tether has been successful, he believes Pi Protocol will offer a more innovative, yield-generating model for stablecoins and crypto markets moving forward.