Tether Co-Founder Introduces Pi Protocol, Aiming to Challenge USDT

In Brief:

Reeve Collins, a Tether co-founder, is developing Pi Protocol, a yield-bearing stablecoin.

The project aims to democratize stablecoin minting and improve compliance with upcoming US regulations.

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Reeve Collins, a co-founder of Tether, has announced a new stablecoin project called Pi Protocol, designed to give users a direct stake in stablecoin issuance and yield generation. Unlike Tether, where the company keeps all the yield from reserves, Pi Protocol will allow users to contribute collateral and earn returns.

This move comes as the US prepares for stricter stablecoin regulations, which may challenge Tether’s dominant position. Pi Protocol’s smart contracts will prioritize collateral backed by Treasury bonds, potentially giving it an edge in compliance where Tether has faced scrutiny. The project is set to launch on Ethereum and Solana in the second half of 2025.

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With USDT’s market dominance at 63%, Pi Protocol faces an uphill battle, but Collins believes the market is ready for an alternative that shares yield with its users while maintaining regulatory transparency.

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