Catenaa, Saturday, March 01, 2025-Tether co-founder Reeve Collins is set to launch a new stablecoin, USP, on Ethereum and Solana in late 2025, aiming to challenge market leaders Tether and Circle with a yield-bearing alternative.
USP will be backed by real-world assets, including Treasuries and money-market funds, and will generate returns for minters through a secondary token, USI. The stablecoin is part of the Pi Protocol, which Collins calls the “evolution of stablecoins.”
“Tether has proven demand for stablecoins but keeps all the yield. We believe the market is ready for a change,” Bloomberg reported citing Collins as saying.
The stablecoin market remains highly competitive, with Tether dominating at 60% market share and Circle’s USDC growing to 24%.
Coinbase recently reaffirmed his goal to make USDC the leading stablecoin, though he acknowledged the challenge.
The upcoming launch follows a regulatory shift in the US, with President Donald Trump signing an executive order promoting stablecoin adoption. Meanwhile, Congress is working on a regulatory framework to formalize their use.
Pi Protocol also emphasized that USP’s backing will focus on “non-correlated, low-risk, high-yield assets,” ensuring security and sustainability in the evolving stablecoin landscape.
