TRON Becomes Latest Blockchain to Deploy Dominant Stablecoin Tether (USDT)

Share Article

TRON, a blockchain that aims to be the standard protocol for the development of decentralized applications, will be adding a US dollar-pegged token on its network.

Sponsored



Sponsored

The stablecoin partnering with the Tron Foundation is none other than Tether (USDT), the dominant stablecoin by market capitalization.

The partnership involves bringing Tether’s USDT coin, which is pegged to the value of a single US dollar, onto the TRON network by the end of Q2 2019.

Sponsored



Sponsored

Stability for Tron

The TRC-20 representation of one US dollar could prove to be a major step for the TRON network, as it will be fully compatible with TRON’s existing protocols — including its decentralized applications (dApps). This could prove to be vital for users and developers of dApps since the inherent volatility of cryptocurrencies has been a bottleneck for usage.

Tron has been known to be the go-to network for betting and casino-like applications. As the network has zero transaction fees, the number of transactions and active users has easily surpassed that of the Ethereum (ETH) network. However, with such a lax environment for transactions, it will be interesting to see how the USD-backed token will be used.

Usage for Tether

The move represents an interesting partnership for Tether as well.

While most of the USDT tokens are issued on the OMNI protocol, there is also an Ethereum-based variant in the form of ERC-20 USDT tokens. That, in itself, has been a pretty interesting development — although it doesn’t seem to be making too much of an impact in the Ethereum dApp scene. With Tether now launching TRC-20 based USDT tokens for TRON’s dApps, it will be interesting to see if this endeavor is more successful.

While Tether has frequently been embroiled in its own battle to prove the 1:1 US dollar backing of USDT, the attention has shifted away from the company following somewhat-questionable confirmation of its holdings.

At present, Tether is still the clear leader for its stablecoin transaction volume — but that market share could slowly dissipate as more institutions enter the space. Recently, JP Morgan confirmed the development of its own USD-pegged stablecoin, while Facebook is rumored to bring a digital currency for its users as well.

The collaboration with TRON could be a way for Tether to stay ahead of the upcoming competition in the cryptocurrency industry and maybe find new use cases for USDT. For TRON, USDT represents another tool to offer to its users for convenient usage of the network.

What do you think? Is this a symbiotic relationship that will help both networks reach new heights? Tell us your thoughts in the comments below! 


Image courtesy of Twitter, Shutterstock.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

After finishing his studies in International Business Administration at the Frankfurt School of Finance & Management, Christian started working at a real estate development company. Upon discovering Bitcoin and the cryptocurrency space, he switched his focus to learn, analyze and write about all things digital.

Follow Author

Crypto predictions with the Best Telegram Signal with +70% accuracy!

Join now

Free Cloud Mining Providers to Mine Bitcoin in 2021

Go

How To Mine Cryptocurrency: Beginner’s Guide

Let's Go