What is Tether’s Position on Building Blockchains? Recently, Paolo Ardoino made it clear that Tether has no intentions of creating its own blockchain. This assertion came in response to a CoinMarketCap report that inaccurately included Tether with companies like Stripe and Circle, which are reportedly exploring the development of dedicated dollar-focused blockchains, dubbed "stablechains".
Ardoino emphasized that Tether is not involved in any blockchain construction, despite its financial support for two projects, Plasma and Stable. He explained that these partnerships represent collaboration and investment, not an indication that Tether is developing its own blockchain network.
Why Does Tether Favor a Multi-Chain Approach? Tether adopts an agnostic stance toward blockchain technologies, preferring to operate across various existing networks instead of confining itself to a single proprietary system. This strategy allows Tether to use its USDT token on multiple major public blockchains, including Ethereum and Tron. By doing so, it preserves its position as a flexible and accessible digital currency instead of tying itself to the success or failure of one blockchain.
What Are the Implications of a Proprietary Blockchain? Building a dedicated blockchain would drastically change Tether's operational framework. It would necessitate attracting validators and developers, generating tools, and persuading users to switch to an entirely new network—all while trying to maintain the multi-chain presence that currently benefits USDT.
How Do Competitors Approach Blockchain Infrastructure? Companies like Circle, which issues USDC, have shown interest in forming infrastructure for stablecoins, as have Stripe. They seek to tailor build their platforms to handle trillions in transactions efficiently. Tether's fallback on a multi-chain strategy enables it to adapt to the evolution of blockchain networks while remaining resilient to shifts in the market landscape.
Since December 2023, Ardoino has led Tether as CEO while also holding the role of CTO at Bitfinex. Given that Tether's success is heavily anchored in trust, perpetuating the idea that they are developing their own blockchain could have created unwanted confusion and strategic risks.