NEW YORK, NY / ACCESSWIRE / April 13, 2021 / The booming crypto market has reshaped the global value exchange in the past couple of years. While the idea of borderless peer-to-peer transaction remains attractive, it has not been translated into mass adoption of crypto assets and blockchain due to their marked price volatility.
But luckily we have emerging stablecoins whose unique feature builds a bridge between the traditional and the decentralized world. As its name suggests, a stablecoin keeps its price stable by pegging itself to a real-world asset. Stablecoins can function as a non-volatile and verifiable medium for decentralized exchange to give full play to the potential of many blockchain ecosystems.
On April 9th, 2021, TrueUSD (TUSD) announced its decision to launch a TRC20 version on TRON, one of the top 3 public chains in the world, marking the official arrival of TRON-based TUSD. TUSD adopts the fungible-token-friendly TRC20 standard, which is also the most widely-applied issuance protocol on TRON. Each TUSD token, as a bridge to convert value between fiat money and digital currency, has the same properties and features. With TRC20-TUSD, users are able to enjoy the diverse and open financial services on TRON with super-low fees and nearly-instant transactions.
As the world’s first 1:1 USD-pegged digital asset audited by independent third party, TrueUSD (TUSD) partners with internationally renowned banks, custodial accounts and third-party verification of funds to lower risk of transactions, ensure transaction transparency and provide token holders with a legal and reliable digital dollar-pegged asset. It has become one of the most sizable and liquid compliant stablecoins worldwide, boasting a supply of more than 300 million
According to Coinmarketcap, TUSD’s market cap has been growing since early 2020 from $150 million all the way to over $500 million, a pace generally in line with the entire stablecoin market, meaning that there is an ever-growing demand of TUSD from institutional investors.
The recent surge of TUSD can be explained by its strong, distinctive advantages, one of which is its compliance. As a licensed MSB (Money Service Business) in the US, the stablecoin TUSD operates with Wall-Street-level compliance and is able to protect user assets. Second, it is a completely transparent project. In contrast to USDT, a fully centralized stablecoin with opaque operations, TUSD introduces third-party custody to administer collateralized assets, so the team is not directly in charge and has no access to any of the reserve. Moreover, TUSD’s fiat swap channel is an efficient and compliant alternative to USDT, which has issue with fiat withdrawal. TUSD swaps take only one day in the US and no more than three days in Hong Kong, China, while USDT swaps typically require 7-70 days to complete.
It can be expected that the birth of TRC20-TUSD will not only diversify stablecoins in the TRON ecosystem and thus reduce the risk exposure caused by lack of choices, but also provide a more secure and compliant option for tens of millions of members and developers in the TRON community. TUSD will also further expand its share in the global stablecoin market with the fast and affordable TRON network.
It is known that more than 90% of DeFi applications on the market are built on Ethereum, the inventor of blockchain smart contracts. Some known examples are Uniswap, Compound and AAVE. However, the excessive influx of DeFi players exposes Ethereum to a stream of fatal flaws such as low throughput, network congestion, expensive transactions and high threshold.
TRON, as one of the world’s top three public chains, gains an edge due to the positive spillover effect from Ethereum and boosts user experience by promising fast transfers, low handling fees and high throughput. In its three years’ of running, the TRON network has constantly been evolving with improved technical capacity and scalability, and has won a sound reputation and public trust among global users, which all cement the healthy operation of TRON-backed stablecoins.
With the supply of TRON-based stablecoins hitting new highs recently, founder of TRON and CEO of BitTorrent Justin Sun said in an interview, “It is probable that the supply of stablecoins on TRON will hit $20 billion or even $30 billion in the foreseeable future.” TRON is known to have many successful cases of stablecoin issuance, the most well-known of which is TRC20-USDT. The issuance of TRC20-USDT doubtlessly takes the performance and competence of the TRON network to a new level. As of April 6, 2021 (HKT), the latest data on TRONSCAN shows that the total circulation of TRC20-USDT has exceeded 20.9 billion with over 2.65 million unique addresses.
Justin Sun notes, “TRON welcomes the compliant stablecoin, TUSD, with open arms. I believe it’s a sensible decision to issue TUSD on TRON, and the successful launch of TRC20-TUSD will bring tangible benefits to both sides: developers and community members on TRON will be given access to a compliant USD-pegged stablecoin, and the ecosystem will get healthier and more comprehensive. I also believe that with the help of TRON’s prosperous and diverse ecosystem, TUSD will promote its values of compliance and transparency, which are also core values of blockchain, to every corner of the world.”
Now, TRON has established a closed-loop DeFi ecosystem, featuring stablecoins, lending, DEX, oracle service, cross-chain asset, etc. TRON-based projects including the decentralized trading platform JustSwap, the decentralized lending service JustLend, the TRON-based oracle JustLink and the decentralized stablecoin issuance platform JustStable all help lay the ground work for TRON’s DeFi empire to take shape. As TRON-based USDT, ETH and BTC are issued at scale, TRON helps relieve substantial stress from Omni and Ethereum networks, a sign indicating TRON’s strong throughput and high compatibility.
As the era of decentralized digital finance that revolutionizes the relations of production unveils, DeFi will certainly attract more traditional assets and institutions that aspire for higher efficiency and lower costs. To that end, stablecoins will definitely have a larger role to play and its market share will grow even larger.
Meanwhile, stablecoins are so essential to a public chain ecosystem that without them a good public chain ecosystem could not be possibly built up. While the TRON community needs a stablecoin ecosystem, TrueUSD also needs a more stable, reliable, and sophisticated public chain.
The TRC20-based TUSD will boost the comprehensive and healthy development of the TRON DeFi ecosystem by optimizing TRON‘s decentralized applications system, bringing higher overall value storage, and adding more liquidity to decentralized exchanges.
“We are confident that with TUSD’s introduction on TRON, we can join hands and achieve win-win results in building a better ecosystem for all. We can fulfill our vision of “enabling compliant and transparent digital assets to circulate freely around the world”. In the meantime, TUSD will continue to empower TRON by tapping the full potential of its ecosystem. TRON’s ecosystem is set to experience a new round of vigorous development soon! Either in building an excellent public chain or in providing diverse user experience, TRON, together with its founder Justin Sun, is always making a strenuous effort.
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