Tether, the very well-known stablecoin, announced its partnership with the Tron Foundation. This version of Tether will launch in Q2 2019.
Tether was created in October 2014. It is a stablecoin or a cryptocurrency that keeps a stable value, backed up by assets, commonly keeping a 1:1 relationship with those assets, though this ratio depends on the token issuer. Tether’s (USDT) value is pegged to the US dollar on a 1:1 ratio, meaning that 1 US Dollar is equivalent to 1 USDTether. Furthermore, for each USDT issued, there is 1 US Dollar to back it up. The main purpose of this token is to reduce volatility and provide a transport for customers to transact with traditional currencies across the blockchain.
Tether is currently positioned as the top 7th cryptocurrency in terms of market cap valuation(as seen above) and places 2nd in terms of transaction volume per day(as seen below).
Currently, USDT has a Bitcoin-based USDTether which was implemented using the Omni Layer Protocol, and also has an Ethereum-Based Tether, compatible with the ERC20 standard.
Stablecoins are considered centralized even though they work with blockchain technology since a centralized body controls the tangible assets.
TETHER ON THE TRON BLOCKCHAIN
Tether has a vision to achieve mass adoption. Have you heard this before? Right, the same vision that Justin Sun has for Tron and the crypto space. This is one of the reasons why USDT will launch its TRC20 based token on Tron’s blockchain. The token will offer interoperability with Tron based protocols and Decentralized Applications (DApps). This is in anticipation to the forecasted upcoming demand from the crypto community. Tron is steadily increasing in the number of DApps every month as well as the number of daily users. At some point, the need to use a stablecoin will be necessary.
Tether’s official account stated the following:
Today we take the next step in our journey towards stablecoin mass adoption though the introduction of USDT on the @Tronfoundation blockchain.— Tether (@Tether_to) March 4, 2019
Read more about how Tron has become the latest blockchain to deploy Tether here: https://t.co/UrVlDXmps6
A WAVE OF OPPORTUNITIES
Tron Odyssey 3.5 opens the door to many possibilities. The upgrade emphasizes on attracting institutional players with important features such as multi-signature capabilities. Tether integration will further complement this effort of bringing about mass adoption as users, traders, and businesses will soon have a way to limit volatility on the Tron protocol via a stablecoin. This will translate to more users and more DApp development on the Tron network. Think about it, there is no need to leave the Tron blockchain in order to safeguard your holdings from price swings. No need to go to Binance nor any other exchange. The transaction will take place on Tron’s own blockchain.
Justin Sun added the following:
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
Making the Right Moves
Tron keeps taking the necessary steps to making sure that it is one of the key blockchain players in the future. Everything it does, from marketing to technical execution, it does with a purpose. Tron wants mass adoption and understands what institutions need in order for them to get involved. Institutions are essential for the blockchain space to thrive. That is why Tron is working hard to put out these vital features to meet the demand of the big players. I wouldn’t be surprised if an announcement comes out stating that TRX will be available on Coinbase. The writing is on the wall.