Reeve Collins, a co-founder of Tether, is launching a new decentralized stablecoin called Pi Protocol, set to launch on the Ethereum and Solana blockchains in the latter half of 2025. Collins, who helped launch Tether in 2014 and served as its first CEO, aims to compete with the original dollar-pegged token he helped create.
Pi Protocol introduces the USP stablecoin, which is minted via smart contracts. Unlike traditional stablecoins, USP will reward minters with a yield-generating token called USI. The stablecoin will be backed by real-world assets like bonds, differentiating it from Tether’s USDT, which is pegged to the U.S. dollar.
Collins views Pi Protocol as an evolution of stablecoins, noting that while Tether has successfully demonstrated the demand for stablecoins, it retains all the returns. Pi Protocol intends to capitalize on the growing stablecoin market and the increasing role of real-world assets in crypto.
Holders of Pi Protocol’s governance token, USPi, will receive a share of the platform’s revenue from stablecoin minting yields and will have voting rights on protocol decisions, including risk management and collateral policies. The project team and advisors have secured 25% of the governance token supply, and a presale is currently underway.
The launch of Pi Protocol comes amid increasing discussion of yield-bearing stablecoins, with Robinhood CEO Vlad Tenev suggesting that stablecoins must offer yield-accrual alternatives to compete with traditional methods of holding and transacting dollars.
