Tether CEO Paolo Ardoino says the company is not building a Tether blockchain and has no plans to launch one, rejecting a widely shared analysis that put the stablecoin issuer inside a $1 billion race.

Ardoino posted the Tether denial on Saturday, one day after CoinMarketCap published research on so-called stablechains. Those networks exist for one job, moving digital dollars cheaply.

Why the Tether Blockchain Claim Took Off

The research grouped Tether with Stripe and Circle. It argued that all three want to own the rails their tokens ride on, and that they have together raised more than $1 billion for the effort.

Stripe leads that group with Tempo, a payments chain that already handles stablecoin payments for DoorDash couriers. Circle follows with Arc, a network aimed at institutional settlement.

Tether looked like the third member because it has backed Plasma and Stable, two separate stablecoin chains. Stable targets institutions and uses USDT to pay network fees. Plasma courts retail users and raised roughly $373 million in a token sale.

However, funding a network is not the same as running one. Ardoino drew that line himself.

USDT Stays on Rails It Does Not Own

Therefore, Tether keeps USDT moving across networks it does not control. Tron and Ethereum still carry most of the supply, and the company has leaned on that reach for years.

That choice carries a bill. USDT holders pay roughly $2.9 billion a year in fees to outside chains, according to CoinMarketCap research. A proprietary chain would capture that revenue for Tether instead.

Consequently, the denial reads as a deliberate trade. Tether gives up toll revenue and keeps distribution, which remains its strongest asset against every challenger.

Meanwhile, the agnostic route buys something a private chain cannot. It keeps the $183 billion USDT market cap liquid across dozens of venues at once.

It also lets Tether act quickly when regulators call, as it did when it froze USDT on Tron alongside the US Office of Foreign Assets Control (OFAC).

Competitive pressure keeps building, though. Circle is winning key national markets with USDC, and Europe squeezed USDT out after Revolut delisted the token under MiCA, the European Union’s crypto rulebook. Tether answered on trust instead, landing its first clean KPMG audit this month.

Source: BeInCrypto