USP, unlike traditional stablecoins will be issued via smart contracts and exchanged for the yield-bearing USI token that is backed up by real assets such as bonds. Tether, as part of a diversification strategy that goes beyond digital assets, is also expanding its investment with a bid to acquire a majority stake at the South American agroindustrial company Adecoagro. Tether also signed an agreement to help Guinea adopt blockchain technology by focusing its efforts on innovation, education and economic growth.

Reeve Collins returns to Stablecoins

Reeve Collins is a Tether co-founder who has returned to the stablecoin space with the release of a rival decentralized token to that dollar-pegged coin he created. Collins now leads Pi Protocol which is a project decentralized that will launch the USP Stablecoin later this year on Ethereum and Solana Blockchains.

Stablecoins are a form of cryptocurrency designed to keep their value stable by being linked to an asset such as a fiat money like the US Dollar, gold or a basket. They provide price stability which is very helpful for applications such as payments, remittances and trading. Stablecoins achieve stability by a variety of mechanisms including algorithmic adjustments or full asset backing.

USP, unlike traditional stablecoins will be issued through smart contracts, in exchange for the yield-bearing USI token, and its backing is tied to real assets such as bonds. The name implies a peg with the US dollar but the specifics regarding fiat backing are not yet clear.

Collins was a major player in developing Tether in 2014, before it was sold to Bitfinex operators in 2015. USDT’s market cap has grown from less than $1 billion in 2014 to $142 billion today. After his comments on stable assets that yielded returns, he is now returning to stablecoins. He believes this will bring in more investors who are looking for returns.

(SourceL DefiLlama)

Pi Protocol enters a landscape of stablecoins that is becoming increasingly competitive. Industry giants such as Tether’s USDT and Circle’s USDC are already creating waves, while MakerDAO’s Dai, Ethena’s USDe, Circle’s USDC and Tether’s USDT have also made their mark. According to DefiLlama, the total supply of stablecoins now exceeds 225 billion dollars. USDC’s growth surpassed USDT’s in the early part of 2024, and Ethena USDe has surpassed Dai to become the third largest stable asset.

(SourceARK Investment )

Stablecoins play a crucial role on the crypto market, as they offer liquidity and make transactions easier for those who are buying or selling digital assets. Stablecoins have gained popularity as a cost-effective and efficient solution for international remittances. Recent ARK Invest research highlighted the massive adoption of stablecoins and showed that transactions will reach $15.6 trillion by 2024. In terms of volume, this was higher than Visa and Mastercard combined.

Adecoagro: Tether eyes majority stake

Tether has also expanded its investment strategy by acquiring a majority share in the South American agroindustrial company Adecoagro. Tether Investments sent the company a non-binding unsolicited proposal to buy a majority stake at $12.41 for each outstanding common share. The firm operates in Argentina Brazil and Uruguay. Tether holds 19.4% of Adecoagro, after first investing in the company with $100 million in September 2024. This secured a stake of 9.8%.

Adecoagro’s board of director met on February 16th to discuss the proposal. They are consulting legal and financial advisors in order to decide the best way forward. While it is evaluating the proposal, no action will be taken by Adecoagro. The potential acquisition comes after Tether recently invested in Italian football team Juventus.

This move comes at a moment when Tether’s finances are under increased scrutiny, especially after JPMorgan analysts claimed that Tether might have to sell Bitcoin to meet new US stablecoin regulations. Tether dismissed the claims quickly by noting its 20 billion dollars in liquid assets, and $1.2 billion of quarterly profits generated from US Treasury holdings.

Adecoagro shares have fluctuated since Tether made its initial investment, falling by about 13% on February 14th to $9.80 a share. At the time of press, AGRO’s share price had risen to $10.98. Market capitalisation of the company is currently close to $1.2 billion.

AGRO financial information (Source: Adecoagro)

Tether’s recent push to gain majority ownership is in line with the master plan of allocating profits towards certain sectors such as fintech, AI, biotech and energy. According to a company spokesperson, agriculture is a good investment for the long term and can be viewed as’safe haven’ during times of geopolitical instabilities. Adecoagro’s investment in Tether is a way to support its commitment to sustainability and resilience, and complements the existing gold and bitcoin holdings. If approved, the acquisition will help Tether expand its footprint into industries other than digital assets and achieve their vision to diversify.

Guinea Partners with Tether to Develop Blockchain Technology

Tether has also signed a deal with Guinea, an African country to investigate blockchain technology and peer-topeer. The stablecoin issuing company announced in a blog on February 17 that it had signed a Memorandum of Understanding (MOU). This MOU aims to lay the foundation for Guinea’s adoption of blockchain technology while also creating an innovation-friendly environment. This partnership will be focused on education, technology advancements and sustainable practices in order to assist the West African nation develop expertise in digital financial services.

The agreement includes a key element of launching education programs in Guinea’s private and public sectors, to raise awareness about blockchain technology and develop local talent. Paolo Ardoino, CEO of Tether, said the aim is to develop efficient blockchain solutions which will drive economic growth in Guinea and make it a technological leader. Djiba Dikite is the Chief of Staff for Guinean interim President Mamady Doumbouya. He believes that it’s important to provide the youth in Guinea with the tools they need to be competitive in the digital economy.

Tether plans to also support Guinea’s Innovation City project. This project aims to establish a technology hub. The initiative is similar to the larger trends that are surfacing in emerging markets where crypto and blockchain adoption has been increasing. According to a recent Consensys study, 84% respondents in Nigeria said they would own a cryptocurrency wallet by 2023. 66% South Africans also reported the same. Only 43% of Americans did.

Consensys Survey Results

This latest agreement comes after Tether’s partnership with Uzbekistan’s crypto- and capital market regulator, in March 2023. The previous partnership was to investigate blockchain applications, tokenization, and stablecoins. Tether is expanding its global influence on blockchain, and the collaboration with Guinea represents another step towards integrating decentralized financial solutions in developing economies.

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Filed under: News - @ February 19, 2025 7:10 am