The TRON blockchain is set to see a huge boost as Tether announce they are set to issue their own TRC-20 USDT token within the TRON mainnet.
If you’re not aware, TRON currently operates on a native blockchain that is similar to Ethereum, it allows other companies to issue their own tokens within the TRON blockchain, though many would argue of course that the TRON blockchain is faster, more efficient and generally better.
Over the past few months we have seen a huge surge in the popularity of stablecoins, this is no doubt down to the surge in stablecoin numbers, with more options currently available within the markets than ever before. Stablecoins such as USDT allow investors to make crypto to crypto purchases whilst using a token that is stable in price. In the instance of USDT, the token is tied to the US Dollar, so the transactions are more controllable, more so than they would be if the investor was making Bitcoin to Dash transactions.
USDT is generally issued via OMNI, but there are also ERC-20 USDT tokens. The launch of TRC-20 tokens will allow USDT to be used more widely and will help bolster the reputation of USDT going forward - this is setting up USDT for a long life across a number of blockchains, strengthening its position as the world’s favourite stablecoin.
According to The Merkle, the TRC-20 variant of USDT is:
“Designed to facilitate conversions from US Dollars to Tron-oriented currency. While this option could prove very useful, the collaboration between Tether and the Tron Foundation will also be considered to be controversial. Tether has been subjected to a lot of scrutiny in recent years, even though nothing has been proven ever since these investigations began. Although it remains a bit unclear when the new version of USDT will launch exactly, it should be somewhere in the next few months. This new currency will not replace the existing OMNI- and Ethereum-based supply in circulation, but merely serve as an addition specifically for the Tron ecosystem.”
We don’t know when this token will launch and to be honest, it probably won’t have any significant impact on the markets. We do however know that this will open up more opportunities for USDT and those investors that choose to use USDT as a medium for transfer.