Tether Decides Against Launching Its Own Blockchain, Expands USDT to Aptos

Tether, the issuer of the leading stablecoin USDT, has decided against launching its own blockchain. This decision is attributed to a saturated market and strategic considerations

Stablecoin issuer Tether has decided against launching its own blockchain.

The decision is down to a saturated market and strategic considerations, according to company CEO Paolo Ardoino. Speaking to Bloomberg News, Ardoino said that the current blockchain landscape is already well-catered for, suggesting that launching a new blockchain may not be the most effective approach given the high quality of available options.

Instead, Ardoino said that Tether’s focus will remain on ensuring that its leading stablecoin USDT continues to be effective and secure through the existing blockchain platforms, which are utilized as “transport layers.” This approach reflects the company’s satisfaction with the current infrastructure and its strategy to leverage existing blockchains for peak performance of its stablecoin.

Meanwhile, on August 19, Tether expanded USDT to the Aptos blockchain in a move that will reduce transaction fees and enhance global accessibility.

The integration will see Aptos’ speed and scalability used to provide users with minimal transaction costs when transferring USDT. Tether’s decision to integrate with Aptos follows significant activity on the blockchain, which saw a record 157 million transactions in a single day in May.

Elsewhere, Tether is making strides in the Middle East with a collaboration that will see a dirham-backed stablecoin launched.

Announced on August 21, the new stablecoin will be fully-backed by liquid UAE reserves and will adhere to Tether’s standards of transparency and robustness. The initiative is expected to offer a cost-effective way for users to interact with the UAE dirham in digital transactions.