Justin Sun Talks Decentralized Finance Future as Tether Partners with Tron for New Stablecoin
It has been a stablecoin season through and through. Now the latest entrant in this trend is the 10th largest cryptocurrency Tron. Tron in partnership with USDT issuer, Tether is all set to go live with the stablecoin on its network by the second quarter of 2019.
USDT coming on Tron Network
Created in October 2014, Tether has been launched as a Bitcoin-based USDTether that was issued via Omni Layer protocol to facilitate frictionless fiat on and off-ramping to the crypto markets.
Later, Ethereum-based Tether made it compatible with all the ETC20 tokens. Now, USDT will be introduced on Tron blockchain that means TRC20-based USDT will enable interoperability with all of the Tron-based protocols and Decentralized Applications (Dapps). This will allow the users to transact and exchange fiat pegged currencies across the Tron blockchain.
“We are pleased to announce this collaboration with the Tron Foundation,” said Jean-Louis der Velde, the Chief Executive Officer of Tether. “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.”
According to Tron Foundation, this “integration will elevate our dApp ecosystem, increase DEX liquidity, and enhance accessibility for Partners and institutional investors.”
Making Tron Institutional-Friendly
Lately, Tron is focusing on institutional investors as recently, Tron CEO Justin Sun had announced the launch of a hard fork that took place on February 28, designed to deliver the features and functionalities that caters to institutions. Now, USD on Tron will also allegedly make Tron blockchain more amenable to the institutional investors and enterprise level partners.
“We are making big steps to achieve decentralized finance with Tether. TRON will soon have its own stablecoin! This will benefit our entire ecosystem and make it easier for institutions to access the TRON blockchain,” said Sun.
Tron is continuously working on the expansion of its network as it launched Tron-based BitTorrent 9BTT) token earlier this year. The BTT initial coin offering (ICO) on the Binance Launchpad raised over $7 million in a sale of 50 billion BTT tokens within 15 minutes.
When it comes to Tether, it is no doubt the dominating stablecoin of the crypto market. However, it is getting fierce competition from the constant flow of new entrants in the market. According to Coinmarketcap, Tether is at the 7th spot by market cap of over $2 billion.
However, the stablecoin has previously faced controversy regarding whether the USD-pegged USDT is 1:1 that its dollar reserves didn’t match its tokens in circulation. Moreover, Tether Limited is still not audited to confirm the necessary funds, however, last year in December-end, its solvency has been confirmed partially as Bloomberg reported.