TLDR
- Original Tether co-founder Reeve Collins is backing Pi Protocol, launching a new yield-bearing stablecoin USP in late 2025
- USP will be over-collateralized with US Treasuries, money-market funds, and insurance products
- The protocol includes USI token rewards for minting and USPi NFTs that provide governance rights and revenue sharing
- Platform will launch on Ethereum and Solana networks initially
- Project team allocated 25% of governance tokens, with pre-sale currently active
Pi Protocol, a new stablecoin project backed by Tether co-founder Reeve Collins, has announced plans to launch in the latter half of 2025. The protocol will introduce USP, a yield-bearing stablecoin that will be available on both Ethereum and Solana networks.
Collins, who served as Tether’s first CEO from 2013 to 2015, brings his experience from co-founding the largest stablecoin project to this new venture. He developed Tether alongside Brock Pierce and Craig Sellars, helping establish the foundation for the modern stablecoin market.
The new protocol aims to address what Collins sees as an evolution in the stablecoin space. In a recent interview, he 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.”
Pi Protocol’s primary offering, the USP stablecoin, will be minted through smart contracts and backed by a diverse range of collateral. These assets include US Treasuries, money-market funds, and insurance products, ensuring the stablecoin maintains its value through over-collateralization.
Users who mint USP will receive an additional token called USI, though specific details about this token’s functionality have not yet been revealed. This dual-token approach appears designed to incentivize early adoption and participation in the protocol.
The project introduces a third component called USPi, a yield-bearing non-fungible token that serves multiple purposes within the ecosystem. USPi holders will receive a portion of the platform’s revenue, which is generated through various channels, including yields from stablecoin minting activities.
Beyond passive income generation, USPi tokens grant holders governance rights within the protocol. These rights include voting power over key protocol parameters, such as risk management, collateral policies, and revenue distribution mechanisms.
Market Reality
The team behind Pi Protocol has allocated 25% of the governance token supply to project team members and advisors. A pre-sale of these tokens is currently underway, though complete details about the sale structure have not been made public.
The timing of Pi Protocol’s launch comes as industry leaders highlight the growing importance of yield-bearing stablecoins. Robinhood CEO Vlad Tenev recently emphasized this point during a Bloomberg TV interview, noting that stablecoins must offer competitive yield options to remain relevant.
Tenev pointed out that traditional bank deposits currently offer around 4% yield in the present high-interest environment. However, he acknowledged that replicating such yields through stablecoins presents technical challenges.
The market has already seen some success with yield-bearing stablecoins. USDe, for example, initially offered holders a 30% annual percentage yield (APY). However, due to dynamic rebalancing, this rate has decreased to 6% at the time of reporting.
USDe’s success in the market is evident in its position as the third-largest stablecoin, having surpassed the established DAI stablecoin by approximately $1.5 billion in market capitalization.
Pi Protocol plans to launch initially on two of the most active blockchain networks: Ethereum and Solana. This dual-network approach aims to maximize accessibility and user adoption from the start.
The protocol’s design includes multiple revenue streams, with yields generated from stablecoin minting being one of the primary sources. These revenues will be shared among USPi holders, creating a direct link between protocol success and token holder benefits.
The development team has emphasized the importance of community governance in the project’s long-term success. Through the USPi system, token holders will have direct input into key protocol decisions, creating a decentralized management structure.
The launch timeline for the second half of 2025 allows the team to complete necessary development and security measures while building community awareness and participation through the ongoing pre-sale period.
