Tether have announced that they are partnering with one of the largest blockchain-based operating systems in the world, the Tron Foundation, to launch the dollar-pegged USDT stablecoin as a TRC-20 token. In a statement, they said: “The TRC20-based USDT enables interoperability with TRON-based protocols and Decentralised Applications (DApps) whilst allowing users to transact and exchange fiat pegged currencies across the TRON Network”.
While there have been several stablecoins launched since March 2018, notably JPMorgan Chase’s JPM Coin, Tether still enjoys market dominance. It is a top ten cryptocurrency by market value, according to CoinMarketCap. However, questions have persisted about whether the cryptocurrency is actually backed by U.S. dollars at a 1:1 ratio.
Most USDT tokens are issued on the Omni protocol, but there is also an Ethereum-based alternative in the form of an ERC-20 USDT token. According to the company’s statement, this new token is designed to ease conversions from US Dollars to Tron-oriented currency and will not replace the existing Omni and Ethereum-based supply in circulation, but act as an addition only for the Tron ecosystem.
Collaboration Will Bring Stability And Confidence To Users, Says Justin Sun
Jean-Louis der Velde, Chief Executive Officer of Tether said: “We are pleased to announce this collaboration with the Tron Foundation. This integration underlines our commitment to furthering innovation within the cryptocurrency space as we continue to anticipate the needs and demands of the digital asset community”.
Tron claims that the addition of USDT will “elevate its existing decentralised applications (DApps) ecosystem, improve overall value storage, and increase Decentralised Exchange (DEX) liquidity”. It also makes the blockchain more accessible to enterprise-level partners and institutional investors.
“Our collaboration with Tether to bring a USDT TRC-20 token to TRON will bring incredible stability and confidence to users,’ said Justin Sun, founder of TRON and CEO of BitTorrent. “As we perform and execute on our vision, they can easily redeem their tokens for US dollars”.