One of the co-founders of Tether (USDT), the world's largest stablecoin, has reportedly led a new stablecoin project.
Reeve Collins, who played a key role in the launch of Tether alongside Brock Pierce and Craig Sellars, is now backing Pi Protocol, a decentralized stablecoin initiative set to launch on the Ethereum and Solana blockchains later this year.
Pi Protocol’s approach is built on the introduction of USP, a stablecoin that is minted through smart contracts, self-executing programs that facilitate transactions between exchanges and market makers. Unlike traditional stablecoins, Pi will reward its miners with a yield-generating token called USI. The stablecoin itself will be backed by real-world assets like bonds, setting it apart from Tether’s USDT, which is pegged one-to-one to the US dollar and generates profits through reserve investments.
“We see Pi Protocol as the evolution of stablecoins,” Collins said. “Tether has been extremely successful in demonstrating the demand for stablecoins. But they keep all the returns. We believe that after 10 years, the market is really ready to evolve.”
Collins, who served as Tether’s first CEO from 2013 to 2015 before selling the company to operators Bitfinex, has since co-founded several ventures, including NFT platform BLOCKv. Commenting on his decision to sell Tether, he said: “I’ve been a huge supporter of Tether over the years; it’s a fantastic thing that we’ve built.”
The Pi Protocol will operate under a decentralized governance model through its native token, USPi. Governance token holders will receive a share of the platform’s revenue from sources such as stablecoin minting yields. Users will also be able to vote on protocol decisions including risk management, collateral policies, and revenue distribution. The project team and advisors have secured 25% of the governance token supply, and a presale is currently underway.
*This is not investment advice.
