Tether’s USDT stablecoin runs directly on the TON blockchain
Stablecoin operator Tether is strengthening its relationship with the Telegram Web3 ecosystem by launching a US dollar-pegged USDT (USDT) stablecoin on The Open Network (TON).
Tether made the announcement on April 19, also announcing the launch of a gold-backed Tether Gold (XAUT) stablecoin.
The announcement came in conjunction with keynote speeches from Tether CEO Paolo Arduino and Telegram founder Pavel Durov at the crypto event Token2049 in Dubai.
At the same event, Tether announced its restructuring and introduced four new business units: Tether Data, Tether Finance, Tether Power and Tether Edu.
Like Arduino, Ton and Tether share a vision of an open, decentralized internet and a borderless financial system.
“The launch of USDT and XAUT on TON will provide users with a financial experience comparable to that found in the traditional financial system by adding seamless value transfer, mobility and liquidity,” said Tether's CEO.
This latest development is another milestone in Tether's expansion across multiple blockchains, bringing its coverage to 15 chains, including Tron and Ethereum.
The milestone is significant for the Ton Network, whose native token Toncoin (TON) overtook Dogecoin (DOGE) as the ninth largest by market capitalization on April 16.
“TON blockchain works with Telegram, meaning USDT and XAUT peer-to-peer payments on TON have the potential to provide a simple and borderless experience to Telegram's user base, which Telegram estimates has over 900 million global users,” the announcement reads.
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What's unique about the launch of USDT on Ton is that the Ton ecosystem enables transfers between fiat and crypto and aims to beat traditional finance through efficiency and ease of use, Ton Foundation Marketing Head Jack Booth told Cointelegraph. He announced:
“[There are] Built-in on-ramps for fiat and international bank cards and accounts are coming soon. This will be the first time that a large audience will be able to use crypto infrastructure for global payments.
USDT's launch on Tons is not the first instance of the two ecosystems interacting. Starting at least in 2023, USDT will be one of the default cryptocurrencies available on Wallet, a third-party standby wallet available to Telegram users, along with other coins such as Bitcoin (BTC) and Toncoin.
At the time of this writing, Tron Network TRC-20 is USDT enabled and is the default blockchain on wallet for USDT. According to Wallet Chief Operating Officer Halil Mirakmed, ton-based USDT will be another option in Wallet, while TRC-20 USDT will remain.
The Tron blockchain held the largest share of USDT issued at the time of the announcement, according to data from Tether.
The news comes a few weeks after the March 2024 launch of a recovery tool that will allow users to migrate USDT between different blockchains. On March 4, USDT surpassed its all-time high market cap of $100 billion.
Additional reporting by Felix Ng.
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