Source: https://tether.to/en/
Crypto finance transforms fast and innovation drives change. In this article, we explore Pi Protocol, a new yield-bearing stablecoin project backed by Reeve Collins, the co-founder of Tether. The project launches in the second half of 2025 on Ethereum and Solana. Furthermore, Pi Protocol mints the USP stablecoin with smart contracts and rewards users with the USI token and the USPi NFT. The system leverages real world assets such as US Treasuries money-market funds and insurance products. The market now holds over $225B in circulating stablecoins and daily blockchain transactions exceed 1.5M. An ARK Invest report noted stablecoin transaction volume reached $15.6T in 2024.
Quick Take
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Furthermore, Pi Protocol launches in H2 2025 on Ethereum and Solana with USP tokens minted using smart contracts and processed in as little as 2.3 seconds on Ethereum and 0.4 seconds on Solana.
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Moreover, the stablecoin is overcollateralized by US Treasuries money-market funds and insurance products and the platform supports over 1.5M transactions per day.
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Additionally, users earn the yield-bearing USI token and the USPi NFT that grants revenue share and governance rights with 25% of tokens held by team and advisors.
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Finally, the stablecoin market now holds over $225B and ARK Invest reported stablecoin transactions reached $15.6T in 2024.
Read more: Top Types of Stablecoins You Need to Know in 2025
Pi Protocol Project Overview
Source: KuCoin
Furthermore, Reeve Collins co-founded Tether in 2013 and led the company until 2015. Tether (USDT) is a fiat-collateralized stablecoin introduced by Tether Limited Inc. in 2014. It maintains a 1:1 peg with the U.S. dollar, meaning each USDT token is designed to be equivalent to one U.S. dollar. This stability is achieved by backing each USDT with corresponding reserves held by Tether, including cash and cash equivalents. The primary function of USDT is to provide cryptocurrency users with a stable asset, mitigating the volatility commonly associated with digital currencies. Under his guidance USDT grew from less than $1B to $142B in market value. He now backs Pi Protocol to drive stablecoin evolution. Furthermore, the project aims to deliver yield through a decentralized system that mints USP tokens on Ethereum and Solana. Blockchain networks process over 1.5M transactions per day with block times of 2.3 seconds on Ethereum and 0.4 seconds on Solana. This technical base supports high efficiency and rapid scalability. On February 18, 2025, Collins announced that he’s backing a new stablecoin project to compete with Tether, dubbing it Pi Protocol.
“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,” Collins said in an interview.
Technical Framework
Stablecoin Market Cap and USDT Dominance. Source: DefiLlama
Moreover, Pi Protocol uses smart contracts to mint the USP stablecoin and issues the yield-bearing USI token in return. The stablecoin is overcollateralized by real world assets such as US Treasuries money-market funds and insurance products. The platform operates on Ethereum and Solana. These networks deliver transactions in as little as 2.3 seconds and 0.4 seconds respectively. The system supports over 1.5M transactions per day. ARK Invest reported stablecoin transaction volume reached $15.6T in 2024. This framework boosts liquidity and drives efficiency in digital finance.
Read more: USDT vs. USDC: Differences and Similarities to Know in 2025
Governance and Rewards
Additionally, the project introduces the USPi yield-bearing NFT to enhance community governance. Holders of USPi share in platform revenue and vote on risk parameters collateral policies and revenue distribution. The team and advisors hold 25% of the governance token supply. During USP minting users earn the USI token which provides yield benefits. This model rewards active participation and ensures the system remains community driven.
What Are Stablecoins and Why Are They Important?
USDT dominance vs. BTC price | Source: Glassnode
Furthermore, stablecoins are digital currencies that maintain a steady value relative to a reference asset. They use collateral reserves or algorithms to stabilize their price. Stablecoins offer liquidity and support fast transactions. They power cross-border payments and remittances. Today stablecoins underpin a market with over $225B in circulating assets. They bridge traditional finance and blockchain systems. Projects like USDT, USDC (USD Coin) and others have paved the way for efficient digital finance.
Read more: Top Types of Stablecoins You Need to Know in 2025
Industry Perspectives
Moreover, industry leaders view stablecoins as essential to digital finance. Vlad Tenev, CEO of Robinhood stated on Bloomberg TV that stablecoins must deliver yield alternatives to bank deposits. Bank cash deposits yield around 4% in high interest periods. Projects like USDe once offered 30% APY but dynamic rebalancing reduced that yield to 6% at press time. Ethena Labs stablecoin now exceeds DAI by $1.5B in market value. These figures highlight both the potential and challenges of yield-bearing stablecoins.
Conclusion
Finally, Pi Protocol signals a new era in stablecoin innovation. The project harnesses smart contracts on Ethereum and Solana to mint the USP token and reward users with USI and USPi. It leverages real world assets such as US Treasuries money-market funds and insurance products to secure overcollateralization. The market now holds over $225B in stablecoins and blockchain networks process over 1.5M transactions per day. ARK Invest reported stablecoin transaction volume reached $15.6T in 2024. Reeve Collins leads a team determined to transform digital finance and deliver yield to users and Pi Protocol paves the way for improved liquidity and efficient governance in a competitive digital asset market.
