Reeve Collins, Tether Co-Founder, Launches Pi Protocol: A New Yield-Generating Stablecoin

Reeve Collins, Tether Co-Founder, Launches Pi Protocol: A New Yield-Generating Stablecoin

Reeve Collins, a co-founder of Tether, has announced the launch of Pi Protocol, a new stablecoin designed to generate yield for holders through tokenized real-world assets. This initiative marks a departure from traditional stablecoins like USDT and USDT, which are fiat-backed, and DAI, which is algorithmically pegged to the U.S. dollar.

Key Features and Market Positioning

Pi Protocol is set to debut on the Ethereum and Solana blockchains in late 2025. While specific details on yield generation are yet to be disclosed, similar tokens have historically derived revenue from assets like U.S. Treasuries. For instance, Mountain Protocol's stablecoin offers a 5% annual yield. Pi Protocol aims to compete with existing yield-bearing stablecoins like Ethena's sUSDe, which currently dominates the market with a circulation of $4.45 billion.

Background and Expertise

Reeve Collins, who led Tether as CEO from 2013 to 2015, played a pivotal role in establishing Tether's relationship with Bitfinex and later founded BLOCKv, an NFT platform that raised $22 million in 2017. His recent sale of Pala Interactive, which raised $70 million, to Boyd Gaming underscores his entrepreneurial success. Tether remains a dominant force in the cryptocurrency market, boasting a market capitalization of $141 billion.

Market Impact and Future Outlook

The launch of Pi Protocol could potentially disrupt the stablecoin market by offering a new yield-generating model. With Collins' track record, the venture is likely to attract significant attention from investors and users seeking innovative financial instruments.