Reeve Collins, co-founder of Tether, is launching a new decentralized stablecoin called USP, which aims to compete with his original creation, Tether’s USDt. The USP stablecoin will enable users to earn yield backed by bonds and other real-world assets. Collins is leading the Pi Protocol, which will deploy the stablecoin on both Ethereum and Solana blockchains later this year. Users will be able to mint USP in exchange for a yield-bearing USI token. While the stablecoin's name suggests it will be pegged to the US dollar, details regarding the specific fiat currency backing it were not disclosed. The stablecoin market is highly competitive, with prominent players like Circle's USD Coin and Dai. As of early 2025, stablecoins account for over $225 billion, with Tether’s USDt representing over 63% of this market. The launch of USP indicates the growing demand for yield-bearing stablecoin offerings in a market that is increasingly seeing innovations aimed at attracting investors who desire interest on their fiat-pegged tokens.

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