Only a few days after Tether Ltd. and the Tron Foundation launched stablecoin tether (USDT) on the Tron network, it’s already seeing support from major crypto exchanges. Poloniex announced support on Friday, while Huobi and OKex are also supporting the launch of the stablecoin. USDT on the Tron network was announced one month ago.
Tether (USDT) has a market cap of over 2.5 billion dollars. The stablecoin is backed by the US dollar, even though this is also one of the major doubts about the construction behind Tether. Nonetheless, USDT is the biggest stablecoin in the world of crypto.
Tether originally launched as a stablecoin for bitcoin, but quickly switched to the Ethereum blockchain. Now the Tron blockchain will be added as well. Tether is using the Omni Layer Protocol to support multiple blockchains with its coins. Yet, USDT issued on the Ethereum blockchain can’t be used on the Tron blockchain.
Introducing a stablecoin to the Tron blockchain is very valuable to the network. Not only does such a stablecoin have very clear use cases for retail and financial sectors, it also allows companies to compete with Paypal and Stripe while using the Tron blockchain.
These are more mid or even long term results of the introduction of a stablecoin. With the introduction of USDT on the Tron blockchain, it will allow investors to be much more active in trading. Liquidity will increase significantly, which means there’s more network activity and that has a positive influence on the use case and the value of a coin.
Also published on Medium.