New Yield-Bearing Stablecoin Project Pi Protocol Backed by Reeve Collins
Reeve Collins, a key figure in the creation of Tether USD (USDT), is now supporting a new project called Pi Protocol, aimed at introducing a yield-bearing stablecoin into the market.
Background
Collins, along with Brock Pierce and Craig Sellars, played a crucial role in the establishment of Tether and served as its first CEO from 2013 to 2015.
Launch and Availability
The decentralized stablecoin by Pi Protocol is set to launch in the second half of 2025 and will initially be accessible on Ethereum and Solana blockchains.
USP Stablecoin
Pi Protocol’s stablecoin, USP, is generated through smart contracts and will be backed by a variety of assets including US Treasuries, money-market funds, and insurance products.
Reeve Collins stated:
“We view Pi Protocol as the evolution of stablecoins. 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.”
Reward System
Users minting USP will receive another token, USI, with specific details yet to be revealed.
USPi and Governance
The project’s official website introduces USPi, a yield-bearing NFT token that grants holders a share of the platform’s revenue. Holders will also have voting rights on key decisions within the ecosystem.
Importance of Yield-Bearing Stablecoins
Recent comments from Vlad Tenev, CEO of Robinhood, emphasize the need for stablecoins to offer yield-accrual options to compete effectively with traditional methods of holding and transacting dollars.
Stablecoins like USDe have shown significant APY rates, but maintaining a high yield can be challenging due to dynamic market conditions.
