Tether is strategically backing new infrastructure projects to reduce its reliance on the Tron network for USDT transactions. The highest conviction opportunity is Plasma (XPL), a new chain designed for gas-free Tether transactions. Investors should add XPL to their watchlist and consider buying the first significant dip after the token becomes available. A secondary, related project to monitor is Stable, which is also backed by the Tether ecosystem. The success of these investments hinges on Tether successfully migrating transaction volume to these new, proprietary chains.

Plasma (XPL)

• This project is described as being very friendly with Tether and its parent company, Bitfinex.
• The teams at Tether and Bitfinex have reportedly invested a significant amount of money to build out the Plasma chain.
• The primary purpose of Plasma is to create an infrastructure for gas-free Tether (USDT) transactions.
• The token is not easily available for purchase at the moment.

Takeaways

• Plasma (XPL) is a project to add to your watchlist due to its strong backing from major crypto players and its specific, high-demand use case.
• The speaker's personal strategy is to wait for the token to launch and then attempt to buy the first dip, suggesting an expectation of initial volatility.
• The success of this project is closely tied to Tether's strategy to build out its own transaction infrastructure.

Stable

• This is another infrastructure project mentioned as being "heavily backed" by Bitfinex and USDTO, which is the multi-chain provider for Tether.
• The speaker notes that the investment from the Tether team in Stable is less than their investment in Plasma.

Takeaways

• Stable should also be monitored as it is part of the same ecosystem and strategic initiative being pushed by Tether.
• Given the lower mentioned investment from Tether's team, it could be considered a secondary play relative to Plasma within this specific narrative.

Investment Theme: Tether's Shift from Tron

• The podcast suggests the main reason Tether is backing projects like Plasma and Stable is to reduce its reliance on the Tron network for USDT transactions.
• There is a belief that Tether is aiming to launch a new, fully regulated version of its stablecoin to gain approval from U.S. regulators.
• This new, regulated USDT would likely run on Ethereum or a new, fully-tracked chain like the ones Tether is backing.

Takeaways

• The core investment thesis for Plasma (XPL) and Stable is based on this major strategic pivot by Tether.
• Investors interested in these projects should pay close attention to news regarding Tether's regulatory status and its volume on the Tron network.
• If Tether successfully moves a significant portion of its transaction volume to its own backed chains, it could create substantial value for the underlying infrastructure and their tokens.