The TRON Foundation has partnered with Tether to introduce Tether’s USDT on the TRON Network, making the popular stablecoin accessible to TRON’s userbase. According to the March 4th press release from Tether, the implementation is planned for launch in April of 2019.
Tether to Launch new TRC20-based USDT on the TRON Network
Following a successful fork and the launch of a new upgrade to its TronGrid, the TRON Foundation has announced the launch of TRC20 based USDT tokens.
The blockchain protocol will enter into a strategic partnership with stablecoin company Tether, partnering with the company to issue its stablecoin USDT on the TRON network. The dollar-pegged USDT should be launched as a TRC20 token on TRON’s network in the early second quarter of 2019. The TRC20 is TRON’s own technical standard used for implementing tokens but is very similar to and compatible with Ethereum’s more well known ERC20 standard.
According to TRON, adding Tether to its blockchain will enable the company to elevate its existing dApp ecosystem and improve overall value storage. The implementation of USDT will also increase the company’s Decentralized Exchange (DEX) liquidity. The press release stated that it will also make the blockchain more accessible to the enterprise-level partners and institutional investors.
We are making big steps to achieve decentralized finance with @Tether_to. #TRON will soon have its own stablecoin! This will benefit our entire ecosystem and make it easier for institutions to access the TRON blockchain👏🏼 $TRX $BTT https://t.co/8mGcypBf9J
— Justin Sun (@justinsuntron) March 4, 2019
Justin Sun, the founder of TRON and CEO of BitTorrent, said that the company’s collaboration with Tether will bring “incredible stability and confidence to users” as they will be able to trade their tokens for purportedly US-backed Tether more easily.
Tether’s Partnership With TRON Could Help the Company Regain Public Trust
The integration of USDT will enable both TRON and Tether users to transact with the coin on the TRON blockchain. This will broaden the use of the company’s network and allow its users to access a cryptocurrency whose value is pegged to the US dollar.
Despite a significant amount of controversy that has surrounded the company since its launch, Tether is still the world’s most popular stablecoin. According to data from CoinMarketCap, Tether is also among the top 10 cryptocurrencies by market cap.
Tether’s meteoric rise in popularity has prompted many questions about whether the company is actually able to back the coin by US dollars. The company promised to release third-party reports that verified its holdings but has failed to do so several times. After parting ways with Friedman LLP in January 2018, Tether’s bank, Bahamas-based Deltec Bank & Trust, released a letter confirming that Tether maintained assets worth $1.8 billion at the time.
However, many experts have called the letter “sketchy” and “unconvincing,” marking Tether as a company lacking transparency. However, Tether’s partnership with TRON will certainly bring its stablecoin closer to more users, which could, in turn, boost the company’s reputation.Posted In: Stablecoins, Tether, Tron