News Scrap

Paolo Ardoino clarified that the leadership has no plans for a new blockchain network, stating that all rumors around “TetherChain” are false.

USDT is the top-ranked stablecoin in the crypto market. Despite several FUD around USDT, the Tether firm behind this stablecoin continues to expand its presence across the crypto space, operating on the majority of crypto networks.

On 4 Nov 2024, Tether CEO Paolo Ardoino addressed rumors about a new blockchain network planned by Tether. He emphasized that such claims are entirely false, as Tether already receives significant support on multiple Layer-2 networks regarding USDT transaction fees.

I hear again few rumors about a Tether Chain.
Tether is not planning to build an official blockchain at this time.
Simply different independent L2 solutions are working to support $USDt for gas fees.

— Paolo Ardoino 🤖🍐 (@paoloardoino) November 3, 2024

In a follow-up tweet, Ardoino clarified that Tether has no plans to launch any blockchain network, at least in the near future, as the company values neutrality and seeks partnerships with various crypto companies. He suggested that a new blockchain would centralize USDT, which goes against Tether’s mission.

One of the main reasons for which Tether won’t launch a chain anytime soon is that neutrality is very important.

Unstoppable TogETHER, our motto, underlines our interest to partner up with other companies and communities rather than trying to centralize everything. https://t.co/NS27QOY5Wr

— Paolo Ardoino 🤖🍐 (@paoloardoino) November 3, 2024

This statement referencing “centralization” subtly hinted at Tether CEO’s possible criticism of the USDC stablecoin by Circle, which launched natively on the Base blockchain this year.

Tether’s Q3 2024 earnings report showed strong financial performance, with $1.09 billion in net profit for the quarter, significantly boosting USDT’s reserves. Tether also highlighted its diversified reserve assets, such as U.S. Treasury bills, underscoring its commitment to transparency and stability within the crypto market.

EU MiCA Regulations and Tether’s New Compliance Solution

With new stablecoin regulatory measures from the European Union (EU) coming into effect, many stablecoins are now facing compliance issues. In early Oct 2024, Tether leadership announced they were working on a tech solution to ensure compliance with the Markets in Crypto-Assets (MiCA) regulation.