Ex-Tether CEO teases new stablecoin to contend USDT dominance

Reeve Collins, one of Tether’s original co-founders, plans to launch a stablecoin on Ethereum and Solana by the second half of 2025.

Collins unveiled the Pi Protocol and its UPS stablecoin as a potential rival to Tether’s (USDT), a token that expanded upon his initial idea when he served as the company’s CEO.

Unlike USDT and Circle’s USD coin (USDC), where issuers control all the proceeds, Collins’ Pi Protocol presents the new stablecoin as a yield-bearing asset. The token is expected to operate similarly to other emerging market players such as Ethena, using tokenized real-world assets to generate passive income.

According to Bloomberg, UPS will hold RWAs like bonds for its reserves. Tether employs a similar strategy through its massive holdings of U.S. Treasuries.

Traders who mint UPS will earn USI as yield, while Pi’s governance structure revolves around the USPi token. Tether’s former CEO stated that governance token holders would receive a share of Pi’s revenue. Pi Protocol will first launch UPS on Ethereum and Solana by the second half of 2025, Collins said in an interview.

Tether co-founder returns to stablecoin market

Tether’s stablecoin and group were co-founded by Collins, Brock Pierce, and Craig Sellars four years after Bitcoin (BTC) debuted. Collins was Tether’s first CEO from its inception in 2013 until 2015, when the iFinex group, owners of the Bitfinex crypto exchange, acquired the digital payment provider.

Tether’s USDT is now the largest stablecoin, with a $141 billion market capitalization, and is considered a crucial component of the global crypto trading ecosystem. Additionally, Tether reported $13 billion in net profit last year.

On the other hand, Collins has since started a non-fungible token operator, and sold a gaming firm that previously raised $70 million. “Hindsight is always 20/20,” Collins said when asked if he regretted leaving Tether.