Justin Sun, the founder of Tron, recently unveiled his team’s ongoing development of a gasless stablecoin solution aimed at enabling cost-free peer-to-peer transfers for all users. The plan is to implement this stablecoin solution on the Tron blockchain in the upcoming quarter, with subsequent integration onto Ethereum and other Ethereum Virtual Machine-compatible public chains in the near future.
According to Sun, transfers can be executed without the need for gas tokens, as the fees will be entirely covered by the stablecoins themselves. Despite this explanation provided in a post on July 6, he did not elaborate on the exact workings of this mechanism.
Sun envisions that these gas-free stablecoins could revolutionize the landscape for companies seeking to provide stablecoin services. Tron currently leads in the peer-to-peer stablecoin transfer sector, consistently processing double to triple the volume compared to the second-placed Ethereum, as highlighted by blockchain analytics firm Artemis in a post on June 27.
Tron hosts over $50 billion of Tether’s (USDT) total value of $112 billion spread across various blockchains, as indicated by data from DeFiLlama.
This innovative solution from Tron could potentially rival PayPal’s PYUSD, catering to certain US-based users for cost-free cross-border payments. Additionally, Circle’s USD Coin (USDC) on Ethereum layer 2 Base via Coinbase Wallet also facilitates free transfers.
Furthermore, Circle and cryptocurrency exchange Binance recently withdrew support for USDC on Tron, which could spur Tron to develop its independent solution. Tron is contemplating the creation of a Bitcoin layer 2 solution that would support a “wrapped” version of Tether, paving the way for significant capital inflows into the Bitcoin ecosystem.
For the time being, Tron is harnessing existing cross-chain protocols to bridge USDT and other tokens between Bitcoin and Tron in a bid to enhance interoperability and accessibility of assets across different platforms.
In a related context, the article delves into the perceived risks to Ethena’s stablecoin model, shedding light on nuanced considerations beyond conventional concerns.