Tron Announces Partnership with Tether to Launch TRC-20-based USDT
March 4, the Tron Foundation has announced a strategic partnership with Tether to issue USDT on Tron blockchain network.
The new version of USDT is based on Tron’s TRC-20 standard, which is similar and compatible with ethereum’s ERC-20 standard. According to Tether’s official announcement, the TRC-20-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”.
TRON Foundation also tweeted that, introducing USDT into the Tron blockchain may elevate Tron dApp ecosystem, increase DEX liquidity, and enhance accessibility for enterprise-level partners and institutional investors.
The new TRC-20-based USDT is expected to launch by the end of the second quarter of 2019.
Indeed, it is a win-win collaboration for both Tron and Tether. On one hand, the TRC-20-based USDT should be marked as is a milestone to Tron as it would be the first stablecoin issued on Tron blockchain. It provides perfect fiat access to Tron which may widen its user base and boost its liquidity.
Justin Sun, funder of Tron also indicated that the collaboration with Tether will bring incredible stability and confidence to Tron users, “they may easily exchange for U.S. dollars with their tokens”.
On the other hand, this partnership would also strengthen USDT’s position in the stablecoin world. As a series of major institutions, for example, Facebook and J.P. Morgan, announced to create stablecoins for their various service, in addition to various stablecoins, including USDC, DAI, GUSD are encroaching on the market share, Tether is gradually lost its dominance.
The collaboration with Tron is the best solution for Tether to enhance its influence in the industry and gain more market share in the current bear market.
Jean-Louis der Velde, Chief Executive Officer of Tether also indicated that
“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.”
It is also worth noting that, the USDT has been met with controversy over the last two years, as various groups of investors have questioned the exact holding of Tether and the 1:1 U.S. dollar backing the company claims.