Tether Co‑Founder Outlines Stablecoin 2.0 with On‑chain Reserves and Separated Yield

Tether co‑founder Reeve Collins described a vision for “Stablecoin 2.0” that would place all reserve assets on‑chain, strip yield from the stablecoin token and use programmable contracts to allocate returns.

On‑chain Reserve Transparency

Collins said the new model would make collateral fully visible on the blockchain, allowing holders to see in real time what assets back the stablecoin. He emphasized that the collateral would be “transparent and on‑chain.”

Yield as a Separate Product

Under the proposed design, the income generated by the reserves would no longer be baked into the stablecoin’s price. Instead, returns could be routed programmatically to investors, liquidity providers or other parties that earn them. This modular approach could enable new financial products without altering the core payment token.

Limits of Transparency

Industry observers noted that on‑chain visibility does not equate to legal protection. While a block explorer can show what an issuer holds, it does not guarantee a holder’s claim in the event of issuer insolvency, which depends on legal structures and bankruptcy law.

AI as a User‑Facing Layer

Collins also predicted that artificial intelligence will simplify interaction with blockchain finance. He suggested that AI‑driven interfaces could let users execute complex transactions through natural language commands, making the underlying infrastructure virtually invisible.