• Tue. Apr 16th, 2024

Will Tether Also Cease Support For USDT Tron?

Steve Kornacki

BySteve Kornacki

Feb 22, 2024
Will Tether Also Cease Support For USDT Tron?

Status On USDT Support For Tron

Following the recent announcement by Circle that it would cease minting its stablecoin on the Tron blockchain, Tether has remained silent on whether it would make a similar move. However, the company issued an official statement explaining that Tether’s tokens are distributed across multiple blockchains, which solely function as transport layers for the tokens.

The company emphasized that it can halt transactions on any transport layer explicitly supported to fulfill its compliance obligations. Accordingly, Tether conducts ongoing assessments of the security measures implemented on all supported transport tiers.

According to Tether, this measure guarantees strict adherence to regulatory standards, ultimately benefiting the community it serves.

Circle’s Tron Network Support

After announcing that it will no longer support USDC on the Tron network, Circle explained that this decision would help it remain committed to maintaining its users’ trust, transparency, and safety. Tether (USDT) is the largest stablecoin, with a market valuation of $97.7 billion, according to CoinGecko.

Circle’s USD Coin (USDC) follows in second, with a market capitalization of $28 billion. Within the broader blockchain ecosystem, the Tron network is a prominent host to Tether, with 51.8 billion USDT.

This accounts for over half of the total supply, or nearly 101 billion USDT tokens across several blockchains, according to Tether’s transparency report dated February 21. In addition, Tether has also committed $76.2 million to guarantee USDT’s near-term liquidity on the Tron network. This demonstrates Tether’s strategic approach to improving the stability and usefulness of its stablecoin within the Tron ecosystem.

Concerns Over USDT On The Tron Blockchain

According to a United Nations (UN) review released in January, USDT on the Tron blockchain is Southeast Asia’s favored method for cybercrime and money laundering activities. The analysis linked this preference to the perceived convenience, anonymity, and low transaction fees of USDT transactions over the Tron network.

In response to the UN study, Tether disputed the allegations, arguing that the investigation missed USDT’s traceability features and the company’s long history of collaboration with law enforcement organizations.

Tether emphasized its proactive steps in freezing more than $300 million in USDT implicated in illegal operations in recent months. A notable incident was the freezing of $225 million last November in collaboration with the US as part of a probe into a human trafficking syndicate in the Asian region.

In November 2023, the Campaign for Accountability, an ethical watchdog group, told US lawmakers about Tron’s involvement in various transactions by accused organized criminal groups and sanctioned businesses. Recall that the United States Securities and Exchange Commission (SEC) filed a lawsuit against the Tron Foundation and its creator, Justin Sun, in March 2023. However, Sun strongly refuted these allegations, leading to a judicial struggle between him and the US regulator.

Steve Kornacki

Steve Kornacki

Steve Kornacki, a respected author at Big Trends Signals, uses his deep online trading acumen to create comprehensive guides and balanced reviews, empowering traders in their digital pursuits.

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