USDT Announces TRC-20 token Standard support on TRON Blockchain Network

TRON has partnered with Tether to launch one of the oldest Stablecoin tokens USDT on its blockchain.

Launched in 2004, Bitcoin-based USDT (USD Tether) is issued via the Omni Layer Protocol, and later Ethereum-based Tether, compatible with the ERC20 standard.

TRC-10 is a native TRON blockchain standard to support tokens on its blockchain without the need of TRON Virtual Machine (TVM). The TRON blockchain supports another native TRC‌-20 tokens standard that is used for smart contracts using the TRON Virtual Machine (TVM).

USDT plans to support TRC20-based tokens which are equally compatible with ERC20 tokens on Ethereum. Thus enabling interoperability with TRON-based protocols and Decentralised Applications (DApps) while allowing users to transact and exchange fiat pegged currencies across the TRON Network.

Executive Opinion

In the official announcement, Chief Executive Officer of Tether, Jean-Louis der Velde, said, “We are pleased to announce this collaboration with the Tron Foundation. 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.”

USDT is Most-Used Stablecoin

In 2018, there are many stablecoins introduced in the market including the Gemini Dollar (GUSD), MakerDao (DAI), Paxos Standard Token (PAX) and TrueUSD (TUSD).

Cryptocurrencies such as Bitcoin, Ethereum and other Altcoins can extremely volatile. Some of them moving up and down by around a factor of 20 to 30 percent within a couple of hours. It is believed that stablecoins can help bring much-needed stability and predictability into crypto markets though this hypothesis remains to be tested to be true. Stablecoins are generally pegged against fiat currency like USD, EUR, CNY or JPY and sometimes against gold or oil.

The USD Tether was the first stablecoin to leverage the stability of the US Dollar, and allow movements of funds quickly between different exchanges with the help of blockchain. It still commands the majority in stablecoin segment in crypto space.

The announcement speaks a major milestone for Tether to expands its footprints different blockchain network. For Tron, this event signifies addition of major TRC20 token on its blockchain network after BitTorrent token.

The announcement said that the companies expect to implement USDT on Tron by the early second quarter.