Unlike traditional stablecoins, USP will be minted via smart contracts in exchange for a yield-bearing USI token that is backed by bonds and real-world assets. Meanwhile, Tether is expanding its investments with a bid for a majority stake in South American agro-industrial firm Adecoagro as part of its diversification strategy beyond digital assets. Additionally, Tether signed an agreement with Guinea to support blockchain adoption in the country by focusing on education, innovation, and economic development.
Reeve Collins Returns to Stablecoins
Reeve Collins, a co-founder of Tether, is making a return to the stablecoin market with the launch of a decentralized competitor to the very dollar-pegged token he helped create. Collins is now leading Pi Protocol, which is a decentralized project that will introduce the USP stablecoin on the Ethereum and Solana blockchains later this year.
A stablecoin is a type of cryptocurrency that is designed to maintain a stable value by being pegged to a reserve asset, like a fiat currency such as the US dollar, a commodity like gold, or a basket of assets. Stablecoins provide price stability, which makes them very useful for payments, remittances, trading, and decentralized finance (DeFi) applications. They achieve their stability through various mechanisms, including full asset backing, algorithmic adjustments, or a combination of both.
Unlike traditional stablecoins, USP will be minted through smart contracts in exchange for a yield-bearing USI token, with its backing tied to bonds and other real-world assets. While the name suggests a peg to the US dollar, specific details regarding the fiat backing of the stablecoin are still unclear.
Collins played a key role in the development of Tether back in 2014 before selling it to the operators of Bitfinex in 2015. Since then, USDT expanded its market capitalization from under $1 billion to an astonishing $142 billion. His return to the stablecoin sector is happening after his previous comments about yield-bearing stable assets, which he believes will attract more investors looking for returns on their fiat-pegged holdings.
(SourceL DefiLlama)
Pi Protocol will enter a stablecoin landscape that has become increasingly competitive, with industry giants like Tether’s USDT, Circle’s USDC, Ethena’s USDe, and MakerDAO’s Dai already making waves. The total stablecoin supply now exceeds $225 billion, according to DefiLlama. Additionally, USDC outpaced USDT’s growth in early 2024 and Ethena’s USDe surpassed Dai as the third-largest stable asset.
(Source: ARK Invest)
Stablecoins serve a critical role in the cryptocurrency market because they provide liquidity and ease of transactions for users buying and selling digital assets. They have also gained traction as an efficient and cost-effective solution for cross-border remittances. A recent ARK Invest report pointed out the very large scale of stablecoin adoption, and revealed that stablecoin transactions reached $15.6 trillion in 2024. This was more than both Visa and Mastercard in terms of transaction volume.
Tether Eyes Majority Stake in Adecoagro
Meanwhile, Tether is expanding its investment strategy with a move to acquire a majority stake in South American agro-industrial firm Adecoagro. The company operates in Argentina, Brazil, and Uruguay, and confirmed that it received an unsolicited non-binding proposal from Tether Investments to purchase a majority share at $12.41 per outstanding common stock. Tether already holds a 19.4% stake in Adecoagro after it first invested in the company in September of 2024 with a $100 million purchase that secured a 9.8% stake.
Adecoagro’s board of directors met on Feb. 16 to review the offer and is consulting with legal and financial advisers to determine the best course of action. The company reassured its shareholders that no immediate action is required while it evaluates the proposal. This potential acquisition is happening after Tether’s recent investment in the Italian professional football club Juventus.
The move is also taking place at a time of heightened scrutiny of Tether’s financial position, particularly after claims by JPMorgan analysts that the firm might need to sell Bitcoin holdings to comply with emerging US regulations on stablecoins. Tether quickly dismissed these claims by pointing out its $20 billion in liquid assets and over $1.2 billion in quarterly profits generated through US Treasury holdings.
Adecoagro’s stock experienced some fluctuations since Tether’s initial investment by dropping about 13% to $9.80 per share on Feb. 14. The AGRO share price climbed to stand at $10.98 at press time. The company's current market capitalization stands at close to $1.29 billion.
AGRO financial information (Source: Adecoagro)
Tether’s latest push for majority ownership aligns with its master plan to allocate profits into certain key sectors like fintech, artificial intelligence, biotech, and energy. A company spokesperson shared that agriculture offers long-term returns and serves as a safe haven investment during geopolitical instability. They also mentioned that investing in Adecoagro supports Tether’s commitment to resilience and sustainability, complementing its existing holdings in Bitcoin and gold. The acquisition, if approved, will solidify Tether’s growing footprint in industries outside of digital assets, and will be a big step in achieving its vision of diversifying into tangible, value-driven sectors.
Guinea Teams Up with Tether for Blockchain Innovation
Tether also recently signed an agreement with the African nation of Guinea to explore blockchain adoption and peer-to-peer technology. In a Feb. 17 blog post, the stablecoin issuer announced a memorandum of understanding (MOU) that is aimed at establishing the groundwork for Guinea’s integration of blockchain solutions while creating and encouraging an environment for innovation. The partnership will focus on education, technological advancements, and sustainable practices to help the West African country develop expertise in digital finance.
A key component of the agreement involves launching educational programs across Guinea’s public and private sectors to build awareness and cultivate local talent in blockchain technology. Tether CEO Paolo Ardoino said that the goal is to implement efficient blockchain solutions that drive economic growth and position Guinea as a leader in technological innovation. Djiba Diakité, the chief of staff for Guinea’s interim president Mamady Doumbouya, believes it is extremely important to equip the country’s youth with the necessary tools to compete in the global digital economy.
Tether also plans to support Guinea’s “Innovation City” project, which aims to create a hub for technology research and development. This initiative is very similar to the broader trends in emerging markets, where blockchain and crypto adoption have been accelerating. A recent Consensys survey revealed that 84% of respondents in Nigeria reported owning a crypto wallet in 2023, while 66% of South Africans said the same, compared to just 43% in the United States.
Consensys survey findings
The latest agreement follows Tether’s previous partnership with Uzbekistan’s crypto and capital markets regulator in March of 2023, which was designed to explore blockchain applications, stablecoins, and tokenization. Tether continues to expand its influence in global blockchain adoption, and this collaboration with Guinea is another step toward integrating decentralized finance solutions into developing economies.
