Tether (USDT), a stablecoin that is reportedly backed by the U.S. dollar will now run on the TRON Blockchain. The news was announced on the platform’s website revealing that the cryptocurrency had first made use of Bitcoin’s Blockchain before settling with Ethereum’s. However, this will no longer be the case due to the latest development.
Tether, a Stable coin that is Less Volatile than Bitcoin
Per the report, Tether, a stablecoin that is less volatile than Bitcoin and some altcoins, will now run on TRON’s blockchain. The developers of the coin on March 4 revealed that the purpose of creating the virtual asset was to disrupt the financial system. This is made possible by enabling customers to transact with an asset whose price fluctuates less than other virtual currencies and is less complex, they added.
The press release also outlined that Tether which was created in 2014 was designed to be blockchain agnostic. Therefore, it was first powered by Bitcoin’s blockchain using the Omni Layer Protocol. At a later time, the digital currency began to take advantage of the Ethereum blockchain complying with the ERC20 network standard.
TRC20-based USDT Brings About Interoperability
The publication also noted that TRC20-based USDT brings about interoperability with the use of TRON-based protocols and Decentralised Applications (DApps). It allows users to transfer the Tether token using the TRON network.
Jean-Louis der Velde, Chief Executive Officer of Tether said they are pleased to reveal their collaboration with the Blockchain company, Tron Foundation. He also added, “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.”
Likewise, Justin Sun, CEO of TRON said:
collaboration with Tether to bring a USDT TRC-20 token to TRON will bring incredible stability and confidence to users.
Tether Makes the Headline Other Than its Stable Price
While Tether is reputably known for its less fluctuating price, it has made the headlines for other things. USDT was allegedly used during Bitcoin’s bubble in 2017 to spike the virtual asset’s price. The US Department of Justice began to probe Bitfinex, the cryptocurrency exchange behind the asset to ascertain if that was the case.
The virtual currency has also raised questions as to if its developers actually hold the number of dollars in reserve which they claim. According to its developers, each of the 1.8 billion supply of the coin is backed by a dollar that is stored in the company’s bank account.