Tether, the world’s leading stablecoin issuer, has partnered with the TON Foundation to bring its USDT stablecoin and the gold-backed XAUT to The Open Network (TON) blockchain. This marks a significant development for both companies, with Tether expanding its reach and TON gaining a major financial instrument.
$60 Million in USDT Minted on TON
The collaboration kicked off at the Token2049 event in Dubai, with an initial minting of $60 million in USDT on TON. This positions TON as the 11th-largest blockchain for Tether, joining a network of 16. Tether CEO Paolo Ardoino expressed optimism, highlighting a “great start” with $35 million issued within days. By April 21st, the authorized supply on TON had grown to $60 million, showcasing increasing adoption.
The integration with TON offers exciting possibilities for Telegram’s massive user base. With USDT on TON, users can send and receive instant, borderless payments directly within the Telegram platform. Gone are the days of complex blockchain addresses – a simple direct message (DM) is all it takes. Tether also promises easy on-ramping and off-ramping capabilities, allowing users to convert between USDT and various fiat currencies seamlessly.
Tether Continues Blockchain Diversification
This move reflects Tether’s ongoing strategy of diversifying its presence across multiple blockchains. While the majority of its $109.8 billion supply resides on Tron ($57.8 billion) and Ethereum ($51 billion, a declining number due to high fees), TON joins a growing list that includes Solana, Avalanche, and others. This diversification helps mitigate network congestion and transaction costs.
Also Read: Tether Makes Power Move: USDT and XAUT Now Live on Telegram’s TON Blockchain
Market Dominance and Toncoin’s Reaction
Tether maintains a dominant position in the stablecoin market, boasting a 69% share with a total market capitalization of $159.5 billion (according to CoinGecko). Its closest competitor, Circle’s USDC, holds a 21% share with $33.7 billion in circulation. Toncoin (TON) initially reacted positively to the news, experiencing a 22% price surge. However, the price has since settled, currently trading at $6.13 (down 1.6% on the day).
Looking Ahead: A Powerful Partnership
The collaboration between Tether and TON is a win-win. Tether gains access to a massive user base and a potentially faster, cheaper blockchain environment. Telegram users benefit from a user-friendly way to send and receive money globally. While Toncoin’s price remains volatile, the long-term implications of this partnership could be significant for both projects.
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