Reeve Collins, the co-founder of Tether in 2014, is preparing to launch the Pi Protocol, which is backed by bonds and other real assets.

Reeve Collins, the co-founder of Tether, is launching a decentralized stablecoin to compete with the dollar-pegged Token that he helped create, increasing competition in the cryptocurrency market.

According to a Bloomberg report on February 18, Collins is currently the chairman of the self-proclaimed decentralized Pi Protocol, which is expected to launch on the Blockchain Ethereum and Solana by the end of this year.

As Bloomberg reported, Pi will use smart contracts to allow parties to mint the USP stablecoin in exchange for the yield-bearing USI Token. This stablecoin will be backed by bonds and other real assets.

Although the name of the stablecoin implies that it will be pegged to the US Dollar, there are no details on the fiat currency it represents.

Collins and his partners developed Tether, the issuer of USDT, in 2014 before selling it to the operators of the crypto exchange Bitfinex the following year. Since then, the value of USDT has grown from less than $1 Billion to $142 Billion.

Prior to announcing the Pi Protocol, Collins had hinted at a yield-bearing stablecoin, stating that interest-bearing assets would attract many investors seeking to earn yield from fiat-pegged Tokens.

The Pi Protocol will enter a increasingly competitive stablecoin market, including Tether and other industry heavyweights like Circle's USD Coin, Ethena's USDe, and Dai.

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The article Co-founder Tether launches Pi Protocol - a stablecoin competing with USDT first appeared on CoinMoi.