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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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Reeve Collins, co-founder of Tether (USDT), is re-entering the $233 billion stablecoin market with Pi Protocol, a decentralized, yield-generating stablecoin set to launch on Ethereum and Solana in late 2025.
According to a Bloomberg Report on Tuesday, the project looks to challenge dominant players like Tether and Circle’s USDC by leveraging tokenized real-world assets such as U.S. Treasuries—a model gaining traction with competitors like Ethena, Mountain Protocol, and BlackRock’s BUIDL.
Co-Founder Collins Reignites Stablecoin Wars with Yield-Bearing Pi Protocol
Collins, who co-founded Tether alongside Brock Pierce and Craig Sellars, served as its first CEO from 2013 to 2015.
Under his leadership, Tether evolved from Realcoin and established a strong relationship with Bitfinex, which later acquired it.
Now, through Pi Protocol, Collins is exploring a new frontier in stablecoin innovation.
Unlike fiat-backed USDT and USDC or algorithmic stablecoins like DAI, Pi Protocol’s stablecoin is expected to generate yield—likely through tokenized real-world assets such as U.S. Treasuries.
This model follows the path of emerging competitors like Ethena’s sUSDe ($4.5B supply) and Mountain Protocol’s USDM (5% yield), alongside BlackRock’s BUIDL fund.
With traditional stablecoins evolving into interest-earning digital dollars, major players are entering the sector.
Tether itself remains dominant, reporting $13 billion in net profits in 2024 from government bonds, repurchase agreements, and money market funds.
Its market cap stands at $141 billion, reinforcing its role as the most traded digital asset in crypto markets.
Meanwhile, institutional investors like BlackRock are betting on programmable dollars as the next phase of financial innovation, while IMF experts suggest stablecoins may strengthen the U.S. dollar’s dominance rather than challenge it.
Tether Expands Into AI While Collins Moves Back Into Stablecoins
While Reeve Collins plans to launch a new yield-bearing stablecoin, Tether is broadening its scope by advancing its AI initiatives.
Its Tether Data division is busy developing applications that include AI Translate, AI Voice Assistant, and an AI Bitcoin Wallet Assistant to enhance user engagement and functionality.
CEO Paolo Ardoino outlined plans for an open-source AI SDK that will support a variety of devices, signaling a commitment to accessible, versatile technology.
A demo of the AI Bitcoin Wallet Assistant showcased a chatbot managing BTC transactions on its own, while complementary tools focus on translation and voice interactions.
Tether’s interest in AI was first signaled in 2023 with an investment in Northern Data Group, a leader in cloud computing and artificial intelligence.
Meanwhile, Collins is making a comeback in the stablecoin market with the Pi Protocol—a decentralized model designed to cater to the rising demand for yield-bearing digital assets.
This development echoes a broader trend, as institutions like BlackRock, along with innovators like Ethena and Mountain Protocol, are investing in similar technologies.
Behind the headlines, these projects illustrate a deeper shift: stablecoins are becoming vehicles for both convenience and returns.
Collins plans to fuse yield with digital tokens, while Tether moves into AI-driven financial tools.
Over the next couple of years, we may discover whether stablecoins finally grow into something more than a temporary bridge between traditional and crypto markets—perhaps taking on an even bigger role in our day-to-day finances.
