USDT0's Co-Founder on Moving $90B Cross-Chain, the Agent Economy, and Tether's Untouchable Moat

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Talking Tokens: Crypto, Onchain Finance, Investing 42 min 1 speaker 8 chapters transcribed 1 month ago
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What inspired Lorenzo to co‑found USDT Zero and how does it differ from regular USDT?

Lorenzo Romagnoli 0:01
Stablecoins are freedom in the form of code. For somebody that is maybe selling um some goods on the street uh in in Tanzania, having the ability to go from a Pesa to a a US dollar denominated nobody can take away from you, it's actually extremely powerful.
Jacquelyn Melinek 0:16
Today's guest is Lorenzo Romagnoli, the co-founder of USDT Zero. Previously Lorenzo spearheaded alloy by Tether, a tethered asset designed to track reference asset prices using tether gold as collateral. There's a lot to discuss today. So Lorenzo, welcome on.
Lorenzo Romagnoli 0:35
Thank you so much, sir. Uh really appreciated. Uh appreciated the invite.
Jacquelyn Melinek 0:39
Of course. Yeah, I'm excited to chat with you today. So, what made you decide to co-found USDT Zero and how does it differ from USDT, which is tethered stable coin?
Lorenzo Romagnoli 0:50
Yeah, sure. So a little bit of of of history of of what we've been doing together with my co-founders for for the last four or five years of our life, right? So um Right after I finished during my second year of uni, basically, uh I was starting to to look a little bit more into how decentralized finance actually works. Uh we're talking about late 2020, so right at the beginning of DeFi summer, and I started really looking into how cool it is, this new system that this this crazy group of people are were building on the internet where you could basically be able to uh reproduce and interact with all of the usual financial tools that we were all used to. In a fully decentralized and permissionless manner, right?
Lorenzo Romagnoli 1:27
So I'm sorry looking a lot into that. It was very, very exciting. And then after a while I started getting closer and closer to the telegosystem. Uh I've always loved the uh The the proposition and the idea behind тедер itself. Uh and after in the last three to four years, both my co-founders and I, which we all met in DeFi and then we moved over to to something a little bit more institutional like like USDT, we started working next to uh to the main core tether team on a bunch of different products. Um The first one and the the the first one we ever did was Alloy that you mentioned before, which is effectively a C D P backed stablecoin that only uses tether gold as collateral to mint uh this this kind of permissionless stablecoin called uh Alloy, uh AUSDT.
Lorenzo Romagnoli 2:10
So we went through all of this. We thought it was a very cool idea. And it was actually, in our opinion, one of the very few ways that you could have scaled up a decentralized stablecoin from A couple hundred million uh on on chain to hundreds of billions potentially in the future. Uh it took a little bit, it was a little bit too early to do this kind of stuff. Uh people were still not used to the idea of gold on chain and so on and so forth. So, right after launching that, we started working a little bit more on the old standard for uh USD deployments, the native standard. So my team and and my my two co-founders have been the one that executed a couple of those native USD deployments, uh specifically on Cello and on Ton.
Lorenzo Romagnoli 2:46
And while we were doing that, we basically realized that there was a very big problem in how you could actually go A to Z on these deployments. You could you could make them, you could create them, but then you had a very big challenge in actually growing them on a certain network. Why? Because uh before the existence of USDT zero, the only way you had uh as an ecosystem to attract USDT means onto your on on your chain, uh was either you could have have people minting directly from Tether, but that's a pretty cumbersome process process because Uh like very few entities can actually mint uh USDT directly from Tether itself. Uh you could withdraw it from a centralized exchange that supported your network, but at the same time there was a centralized uh a single centralized pointer and it was QIC and it was very challenging.
Lorenzo Romagnoli 3:31
Uh or the other solution that you could have was basically trusting third party bridges. So they uh multiple different bridges that all of those different chains actually had integrated on onto their network. And We kinda looked at this thing and we realized that something was missing there.

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