Tether Denies Blockchain Plans Amid $1 Billion Stablechain Funding

Tether's CEO Paolo Ardoino has denied rumors that the company is building its own blockchain. The claim was made after CoinMarketCap published research on stablechains, which argued that Tether, along with Stripe and Circle, had raised over $1 billion to fund their respective chains.

However, Ardoino clarified that Tether is not building a blockchain and has no plans to launch one. He stated that the company remains agnostic and supports many transport layers for its stablecoins, including Tron and Ethereum.

This decision allows Tether's USDT to stay on rails it does not own, with most of the supply still carried by Tron and Ethereum. This choice comes at a cost, with USDT holders paying around $2.9 billion in fees to outside chains each year, according to CoinMarketCap research.

A proprietary chain would capture this revenue for Tether instead, but Ardoino's statement suggests that the company is prioritizing its distribution and liquidity over potential toll revenue.