Tether, the company behind the stablecoin USDT, has issued $60 million worth of its digital currency on The Open Network (TON).
This development follows closely on the heels of Tether’s partnership with the TON Foundation, which was publicized at the Token2049 conference in Dubai. The move is a further step in the expansion of Tether’s coverage across different blockchains, the latest of which is TON, which has become the 11th blockchain to support the stablecoin.
Tether’s Expansion to TON
The alliance between Tether and the TON Foundation had been disclosed at the Token2049 crypto conference, which took place in Dubai on April 19. That statement has established a new standard for stablecoin inclusion within the blockchain ecosystem. During the existence of this partnership, approximately $60 million in Tether has been minted on TON, which displays the fast adoption and popularity among the crypto community.
Moreover, Tether has also launched its gold-based stablecoin, Tether Gold (XAUT), on the TON blockchain, multiplying the products that are available on this blockchain.
Tether Tokens USD₮ and XAU₮ are now live on the Ton blockchain & available in the @telegram wallet. pic.twitter.com/9KdoKT19Jc
— Tether (@Tether_to) April 19, 2024
The Open Network highlighted how straightforward and fast it is to make cross-border payments on its network, comparing it to sending a text message on Telegram, which has a large user base. This move is aimed at simplifying financial transactions for Telegram’s 900 million users by providing immediate, free transfers with no need for a regular blockchain address or a download of an additional application.
Enhanced Accessibility and Integration
After USDT on TON launch asserts its victory post, the collaboration looks to improve the usage of Telegram’s messaging platform, supporting smooth transfers between its users. USDT on TON launch is supported by integrated on-ramps, enabling the conversion of most fiat currencies to USDT straight away.
Additionally, they will set up global off-ramps that will make it possible to convert USDT to supported fiat currencies and to withdraw through bank accounts or cards. This move will ensure that digital currencies are extremely accessible, as simple as sending a DM on Telegram.
3/ Faster, Cheaper, Easier.
This initiative is set to transform global peer-to-peer payments, allowing Telegram's users to send transfers freely and instantly between all Telegram users; all you need to do is send a DM, no need for a blockchain address, and no need to download a…
— TON 💎 (@ton_blockchain) April 19, 2024
Tether’s initiative on TON has rapidly gained traction, with the authorized supply reaching $60 million by 11:30 pm UTC on April 21, according to the Tether Transparency report. This venture represents a milestone for Tether’s integration on various blockchain networks, highlighting the company’s commitment to expanding the stablecoin’s accessibility and utility.
Market Dynamics and Tether’s Position
The stablecoin market is dominated by Tether, which controls 69% of the total market capitalization, which is around $159.5 billion. However, despite the competition, Tether’s nearest competitor, Circle’s USD Coin (USDC) holds a 21% market share with $33.7 billion in circulation. The majority of Tether’s $109.8 billion circulating supply is held on the Tron network with $57.8 billion, followed by Ethereum, which has $51 billion. The distribution of USDT on different blockchains is intended to prevent high network fees from affecting the coin, especially on the Ethereum blockchain.
The market positively perceived the announcement of the Tether issuance on TON, which initially resulted in a 22% increase in the value of Toncoin (TON). Nevertheless, the price was quickly stabilized, confirming the unpredictable character of cryptocurrency markets. At press time, Toncoin is quoted at $6.15, which represents a marginal 0.7% decrease for the day, according to CoinGecko data.
