Reeve Collins Launches USP: Yield-Bearing Stablecoin to Rival Tether in 2025
LTB Reeve Collins’ USP: A New Era for Yield-Bearing Stablecoins
Reeve Collins, a co-founder of Tether, is set to shake up the stablecoin market with the launch of USP, a yield-bearing stablecoin, in the second half of 2025 on the Ethereum and Solana blockchains. This move aims to challenge the dominance of Tether’s USDT while introducing a new form of decentralized finance that offers users a chance to earn interest on their holdings.
- USP launch in 2025 on Ethereum and Solana
- Yield-bearing stablecoin backed by real-world assets
- Competes with Tether and Circle’s USDC
- Regulatory support in the U.S. for stablecoins
When Collins left Tether in 2015, the stablecoin’s market value was less than $1 billion. Fast forward to today, and Tether has grown into a behemoth with a supply of approximately $141 billion, commanding a 60% market share. Now, Collins is back with a vengeance, ready to disrupt his former creation with USP, which will be backed by yield-bearing real-world assets such as bonds, over-collateralized with Treasuries, and money-market funds. To offer yield to its users, USP will mint another token called USI, allowing minters to earn interest on their investments. In simple terms, “yield-bearing” means that your stablecoin holdings can generate income, much like earning interest on a bank deposit.
Collins isn’t shy about his ambitions for USP. “We view Pi Protocol as the evolution of stablecoins,” he told Bloomberg. “Tether has been extremely successful in showcasing demand for stablecoins. But they keep all the yield. We believe 10 years later the market is really ready to evolve.” This critique of Tether’s model is a bold move, challenging the status quo in the stablecoin arena.
“We view Pi Protocol as the evolution of stablecoins,” Collins told Bloomberg. “Tether has been extremely successful in showcasing demand for stablecoins. But they keep all the yield. We believe 10 years later the market is really ready to evolve.”
Pi Protocol, the project behind USP, aims to take stablecoins to the next level. According to Pi Chief Executive Officer Bundeep Singh Rangar, USP will offer non-correlated, mid- to high-yield, low-risk assets. “You want assets that are non-correlated to crypto that are mid- to high yield, low-risk,” Rangar explained. “We have a mechanism that assesses the quality of the asset. They are ones that are vetted on their loss ratio and origination of where they are coming from.” Non-correlated assets, in this context, refer to investments that don’t move in tandem with the cryptocurrency market, providing a more stable yield.
“You want assets that are non-correlated to crypto that are mid- to high yield, low-risk,” said Pi Chief Executive Officer Bundeep Singh Rangar. “We have a mechanism that assesses the quality of the asset. They are ones that are vetted on their loss ratio and origination of where they are coming from.”
The timing of USP’s launch couldn’t be better, as the U.S. government is showing increased support for stablecoins. President Donald Trump signed an executive order promoting stablecoin adoption, and Congress is working on a regulatory framework, including the GENIUS Act and STABLE Act of 2025. These legislative efforts aim to balance federal oversight with state-level flexibility, potentially creating a more favorable environment for stablecoins like USP. The GENIUS Act, in particular, focuses on interoperability and consumer protection, which could provide a boost to new stablecoins trying to enter the market.
While Tether remains the dominant player, the competition is heating up. Circle’s USDC holds a 24% market share with a supply of $56 billion, and USDS (formerly DAI) has a 4% share with nearly $9 billion in circulation. Coinbase CEO Brian Armstrong has set his sights on making USDC the number one stablecoin, though he admitted this is a “stretch goal.” The stablecoin market’s total capitalization has surpassed $225 billion, highlighting its crucial role in providing liquidity and transactional efficiency in the cryptocurrency ecosystem.
“Regulations are shifting. Yield-bearing stablecoins will be the next trillion-dollar asset class,” tweeted Pi Protocol.
Collins’s vision for USP is ambitious, but it’s not without its challenges. The stablecoin market is crowded, and new entrants must navigate a complex field while complying with emerging regulations. The GENIUS Act’s focus on interoperability and consumer protection could benefit projects like USP, but the regulatory burden may pose hurdles for smaller issuers. It’s a high-stakes game, and only time will tell if USP can live up to the hype.
As a champion of decentralization and financial freedom, Collins’s move to launch a yield-bearing stablecoin resonates with the broader ethos of the crypto revolution. While USP aims to disrupt the market, it’s important to approach such innovations with a healthy dose of skepticism. The promise of yield-bearing stablecoins is exciting, but it’s crucial to scrutinize the underlying assets and the mechanisms that generate that yield. After all, in the world of crypto, if something sounds too good to be true, it often is.
Despite these challenges, the potential for USP to redefine the stablecoin landscape is undeniable. If successful, it could herald a new era where users are rewarded for holding stablecoins, further accelerating the adoption of decentralized finance. But for now, the crypto community will watch with bated breath as Collins and his team at Pi Protocol prepare to launch USP and take on the giants of the stablecoin world.
Key Takeaways and Questions
- What is the USP stablecoin and when will it be launched?
USP is a new decentralized stablecoin set to be launched by Tether co-founder Reeve Collins in the second half of 2025 on the Ethereum and Solana blockchains.
- How does USP plan to compete with Tether?
USP aims to compete with Tether by offering a yield-bearing stablecoin backed by real-world assets, allowing minters to earn yields in the form of another token called USI.
- What are the current market shares and supplies of the leading stablecoins?
Tether (USDT) has a 60% market share with a supply of about $141 billion, Circle’s USDC has a 24% market share with $56 billion, and USDS (formerly DAI) holds nearly a 4% market share with $9 billion in circulation.
- What regulatory changes are affecting the stablecoin market in the U.S.?
U.S. President Donald Trump signed an executive order promoting stablecoin adoption, and Congress is working on a regulatory framework for stablecoins, including the GENIUS Act and STABLE Act of 2025.
- What are Pi Protocol’s views on the future of stablecoins?
Pi Protocol views itself as the evolution of stablecoins, aiming to introduce non-correlated, mid- to high-yield, low-risk assets through its USP stablecoin.
- What are Coinbase’s ambitions regarding stablecoins?
Coinbase CEO Brian Armstrong aims to increase USDC’s market share, with the goal of making it the number one stablecoin, although he admitted this is a “stretch goal.”
