Tether to Issue New USDT Stable Coin on Tron Blockchain

News and Analysis

Tether Limited, issuer of USDT stable coin, has announced a partnership with Blockchain protocol Tron to introduce USDT as a native token to the Tron network.

The dollar-pegged TRC-20 USDT stable coin will be launched by the end of Q2 2019 and will be interoperable with all Tron-based protocols and decentralized applications (DApps), allowing for the transaction and exchange of fiat-pegged coins across the blockchain.

“Tether was created in October 2014, with a clear purpose to disrupt the legacy financial system. It does this by providing a vehicle for customers to transact with traditional currencies across the blockchain, without the volatility or complexity typically associated with a digital currency,” Tether’s announcement reads.

According to the company, to achieve the mass adoption necessary to fulfill this vision, Tether was inherently designed to be blockchain agnostic. Since its launch, it has enjoyed widespread success of Bitcoin-based USDTether issued via the Omni Layer Protocol, and later Ethereum-based Tether, compatible with the ERC-20 standard.

“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,” added Jean-Louis der Velde, CEO of Tether.

Meanwhile, Justin Sun, the CEO of Tron Foundation, took to Twitter to say that together with Tether Tron is making “big steps to achieve decentralized finance.”

“TRON will soon have its own stablecoin! This will benefit our entire ecosystem and make it easier for institutions to access the TRON blockchain,” he added.

Tether is the world’s most popular stable coin that is sitting in CoinMarketCap’s Top-10 cryptocurrency rankings by market value. However, questions have long existed about whether the token is actually backed by U.S. dollars at a 1:1 ratio.

While the company has promised to hire an auditor to verify its holdings, it has yet to do so after parting ways with Friedman LLP last January.

In November 2018, Bahamas-based Deltec Bank & Trust, which provides banking services to the company, did release a letter verifying that Tether had an account and maintained assets worth $1.8 billion at the time (total USDT tokens in circulation add up to a little over $2 billion at press time). Soon afterwards Bloomberg News reported that it has seen Tether bank statements indicating that, over four separate months at least, the company held sufficient dollars to back USDT tokens on the market.

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