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Tether’s Issuance on TON Blockchain Reaches $60M, Marking a ‘Great Start,’ Says CEO

ByDayne Lee

Apr 23, 2024

Tether’s Issuance on TON Blockchain Reaches $60M, Marking a ‘Great Start,’ Says CEO

Since its introduction to The Open Network (TON) on April 19, Tether (USDT) has experienced significant growth, with $60 million worth of the stablecoin now issued, making TON the 11th-largest blockchain for Tether among 16. This rollout coincides with the partnership announced at the Token2049 crypto conference in Dubai between Tether and the TON Foundation.

Overview of Tether on TON

The integration of USDT into TON was designed to enhance the usability of cross-border payments, promising instant and fee-free transactions. Tether also launched Tether Gold (XAUT), a gold-pegged stablecoin, on TON, expanding its offerings on the new platform.

  • Initial Issuance: Tether CEO Paolo Ardoino touted a “great start” on TON with an initial $35 million USDT issued.
  • Rapid Growth: The authorized supply on TON grew to $60 million by April 21, according to Tether’s Transparency report.

TON’s Integration with Telegram

TON’s collaboration with Telegram could revolutionize how the messaging app’s 900 million users interact with digital payments. The integration allows users to send USDT through direct messages without needing a blockchain address or additional applications, simplifying the process considerably.

  • User-Friendly Transfers: Users can send USDT as easily as sending a text message.
  • On-Ramps and Off-Ramps: TON supports fully integrated on-ramps for most fiat currencies and plans to add off-ramps that will allow users to convert USDT directly to bank accounts or cards.

Tether’s Blockchain Distribution

While TON is the latest addition, the majority of Tether’s circulating supply remains on the Tron and Ethereum networks, with Tron holding $57.8 billion and Ethereum $51 billion. The distribution across multiple blockchains aims to mitigate high network fees, particularly those associated with Ethereum.

  • Tron and Ethereum: Hold the largest portions of USDT.
  • Other Networks: Solana, Avalanche, Omni, Cosmos, Tezos, Near, EOS, and Celo also support Tether issuance.

Market Impact and Stablecoin Competition

Following the announcement, Toncoin (TON) prices briefly spiked by 22% before stabilizing. As of the latest update, Toncoin is trading at $6.13, reflecting a slight decrease. This fluctuation underscores the market’s reactive nature to significant developments in stablecoin integrations.

  • Tether’s Dominance: Holds a 69% market share within the stablecoin market, valued at approximately $159.5 billion.
  • Circle’s Position: Circle’s USD Coin (USDC) maintains a 21% market share with $33.7 billion in circulation.

The successful rollout of Tether on TON could set a precedent for future blockchain integrations, potentially influencing how stablecoins are utilized within digital ecosystems. The strategic expansion across multiple blockchains not only diversifies Tether’s operational risk but also enhances its accessibility and utility across different technological platforms.

Tether’s robust start on The Open Network marks a significant milestone in its ongoing effort to increase accessibility and reduce transaction costs for users globally. As the stablecoin landscape continues to evolve, Tether’s strategic initiatives like the TON integration are pivotal in shaping the future of digital currency transactions.

Featured image credit: Micah Ogugua via Medium

Dayne Lee

With a foundation in financial day trading, I transitioned to my current role as an editor, where I prioritize accuracy and reader engagement in our content. I excel in collaborating with writers to ensure top-quality news coverage. This shift from finance to journalism has been both challenging and rewarding, driving my commitment to editorial excellence.

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