Network fees account for nearly 60% of Tether’s total revenue, and that money is flowing into outside hands. Out of an estimated $4.9 billion in annual revenue generated from $150 billion in circulating USDT, Tether concedes roughly $2.9 billion to blockchains it does not control, primarily Ethereum and Tron. Tether’s response to this fee leakage comes in the form of a two-front strategy: funding two new blockchains that directly compete with each other.
The primary target of this strategy is capturing transaction traffic from Tron, which has long served as the backbone for USDT remittances across Asia, Africa, and Latin America. According to Delphi Digital, USDT infrastructure currently remains largely outside Tether’s control, allowing other networks to capture its economic value. To turn the tide, Tether is backing Plasma and Stable, two networks with contrasting approaches that both offer zero-fee USDT transfers.
Two Divergent Paths
Plasma is backed by capital from entities closely aligned with Tether and Founders Fund. The network raised $373 million in a token sale oversubscribed sevenfold, launching in September as a general-purpose EVM Layer 1. Operating as a full-featured blockchain that subsidizes stablecoin routes via paymaster contracts, Plasma boasts a TVL of $551 million and has already onboarded prominent names including Aave, Ethena, and Euler. The network relies on its XPL token for validator staking.
On the other hand, Stable (or StableChain) takes a minimalist route. Backed by Bitfinex with Tether’s CEO serving as an advisor, Stable secured $2 billion in initial deposits ahead of its December mainnet launch. The network is designed as enterprise blockspace rather than chasing DeFi yields. USDT transfers are made free natively at the protocol level, operating on a principle of keeping the blockchain as minimal as possible to maximize dollar payment functionality. Its native token, STABLE, is strictly used for governance and staking.
One Shared Weapon on the Front Lines
Despite differing architectures, both blockchains rely on the same ammunition: USDT0. This is an omnichain version of USDT based on LayerZero OFT operated by Everdawn Labs, rather than Tether directly. The token has even been designated as the native gas token within the StableChain ecosystem. Since January 2025, USDT0 has reportedly transferred over $50 billion in cumulative value.
Building proprietary ecosystems is inherently risky, especially when simultaneously funding two rivals competing head-to-head. For millions of USDT users across emerging markets, who wins between Plasma and Stable may not matter - as long as their transfer fees drop to zero.
Source: crypto.news.
Read also: What is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
