Tether Launches USDT On TON Blockchain: Why Is This Important?
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Tether Introduces USDT and XAUT on TON Blockchain
Tether, the stablecoin issuer, has significantly strived towards bolstering its presence within Telegram’s Web3 ecosystem. It has launched its US dollar-pegged stablecoin, USDT, on The Open Network (TON).
This move coincided with the revelation of launching another stablecoin, Tether Gold (XAUT), on this blockchain. The announcement was made during the Token2049 event in Dubai, where Tether CEO Paolo Ardoino and Telegram founder Pavel Durov delivered keynote speeches.
Paolo Ardoino highlighted the shared vision of TON and Tether, emphasizing an open, decentralized internet and a borderless financial system. This integration of USDT and XAUT into the TON blockchain aims to facilitate seamless value transfer, enhancing liquidity within the ecosystem while providing users a financial experience comparable to traditional systems.
Tether Continues Multi-blockchain Expansion
This move by Tether marks another significant milestone in its expansion across various blockchains, bringing its total coverage to 15 chains, including established ones like Tron and Ethereum. The collaboration between Tether and TON could revolutionize peer-to-peer payments, especially within Telegram’s vast user base of over 900 million global users.
Jack Booth, TON Foundation’s marketing head, highlighted the TON ecosystem’s ambition to surpass traditional finance in efficiency and ease of use. He emphasized the introduction of built-in on-ramps for fiat at launch, with plans for global off-ramps to bank cards and accounts soon.
TON-based USDT and XAUT Offer New Opportunities for Crypto Traders
Furthermore, the introduction of USDT on TON continues the ongoing connection between the two platforms. Starting in 2023, USDT has been one of the leading digital currencies on TON’s Wallet, a third-party wallet used for Telegram users.
Alongside Bitcoin and Toncoin, USDT on the Tron blockchain has been the default option on Wallet. However, with the introduction of TON-based USDT, users have another alternative for their transactions while retaining access to TRC-20 USDT.
However, Halil Mirakhmed, the chief operating officer of Wallet, affirmed that TRC-20 USDT will remain available on the Tron blockchain, which currently holds the largest share of issued USDT. This statement reaffirms Tether’s commitment to providing users with multiple blockchain options for stablecoin transactions.
The integration of USDT and XAUT onto the TON blockchain follows Tether’s recent initiatives, including launching a recovery tool last month, enabling users to seamlessly migrate USDT between different blockchains. This move coincided with USDT reaching an all-time high market capitalization of $100 billion on March 4th, underlining its dominant position within the stablecoin market.
Tether Forms Four New Divisions for Growth
Meanwhile, Tether has announced a significant restructuring to reflect its diversifying interests within the digital assets landscape. The move comes as Tether expands beyond its flagship stablecoin, USDT, into other aspects such as data, finance, power, and education.
This step indicates a broader vision for financial empowerment and technological innovation. The reorganization entails the formation of four distinct divisions: Data, Finance, Power, and Edu.
Each division corresponds to specific sectors where Tether is actively investing and engaging. The data division will oversee investments in technology, including artificial intelligence (AI), reflecting Tether’s commitment to cutting-edge innovations.
Finance remains a core focus for Tether, with USDT playing a pivotal role in the cryptocurrency ecosystem. Under the Finance division, Tether will continue to manage and develop USDT, ensuring its stability and utility in digital transactions.
The Power division signals Tether’s entry into Bitcoin (BTC) mining investments, aligning with the growing trend of companies diversifying into cryptocurrency mining operations. This move underscores Tether’s commitment to supporting sustainable and responsible mining practices.
Meanwhile, the Edu division underscores Tether’s dedication to educational initiatives within the blockchain and cryptocurrency space. Tether aims to empower individuals and communities to participate meaningfully in the digital economy by furnishing them with the proper knowledge.
A Future-Proof Finance Ecosystem
In addition, Tether emphasized its commitment to sustainable solutions tailored to meet the evolving needs of individuals, communities, and nations. The company aims to proactively foster a future-proof financial and technological ecosystem, encompassing responsible Bitcoin mining, AI infrastructure, and decentralized communication platforms.
Tether has made substantial investments in these areas, notably its BTC mining operations in Uruguay and partnerships with data cloud provider Northern Data Group. However, establishing distinct divisions underscores its intensified focus on diversification.
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