Stablecoin is a term used for cryptocurrencies that holds stable values and are designed to minimize the price variations caused by its volatility. Tether’s USDT stablecoin pegged to the US Dollar rules the stablecoin market. As per reports, Tether has been readying itself to join hands with Tron and introduce its most discussed stablecoin as a native token on the Tron Platform. The companies issued public statements on Monday stating this USDT stable coin will be released as a TRC-20 token, which is well matched, equivalent and in turn with Ethereum ERC-20 token. Tokens are executed on the Tron Platform with the TRC-20 technical standard, which will permit cryptocurrencies that are propped up by the fiat currencies across Tron’s Ecosystem and convert them.
This compatibility, not only does it ensures the effortless implementation of the tokens based on DApps and protocols on the Tron platform for the users, but this would also be a step to increase the liquidity of Tron’s decentralized exchange. This partnership will also guide various corporate partners and institutional financial investors to access the Tron’s network.
According to a statement by Tether’s CEO, Jean-Louis van der Velde,
“This partnership highlights their dedication towards renovating the crypto market which foresees and adheres to the wants of the digital asset community.”
Although Tether is an existing stable coin on the Bitcoin and Ethereum blockchains, an updated version of the USDT is anticipated by the next quarter.
Despite the fact that various stablecoins have been released, and long lasting speculations over the digital currency being backed by the US dollars in a 1:1 ratio, Tether still dominates the crypto market. Based on the reports, Tether holds a position amidst the top ten cryptocurrencies compared by market value.
The company has not yet cleared its name from those conjectures. There has been a delay in hiring an auditor to substantiate its valuables especially after the split from its counterpart, Friedman LLP. However, the Deltec Bank and Trust based out of Bahamas, issuing financial services, declared the details on Tether’s accounts and assets that were worth 1.8 million and accumulated to over $2 billion with the total USDT tokens that were in circulation.
Tron was enquired about the concern over the holdings; a representative directed the question towards the comprehensive Bloomberg Report that held details on assets to support the USDT stable coins in circulation for a minimum period of 4 months. In addition, Tron CEO, Justin Sun stated that
“Alliance with Tether to launch the USDT TRC-20 token on the Tron blockchain will increase the faith and credibility amidst the users. It will become easier for the customers to exchange their cryptocurrency to its relative price in Fiat currency.”
This union will bring about an improvement in the decentralized financial system.