Tether remains tight-lipped on potential release of USDT on Tron blockchain

Tether, the stablecoin issuer, has not given a clear answer on whether it will continue to support the Tron network after its competitor, Circle, stopped minting its stablecoin on the blockchain. When asked about Circle’s move and whether Tether was considering a similar action, Tether stated that its tokens are issued on various blockchains, which serve as transport layers for the tokens. Tether also mentioned that it has the ability to freeze transactions on each supported transport layer to comply with regulations and ensures the safety of its community. Tether is currently the largest stablecoin with a market capitalization of $97.7 billion, while Circle’s USD Coin trails behind at $28 billion. According to Tether’s transparency report, over 51.8 billion USDT tokens are on the Tron network, accounting for more than half of the total 101 billion USDT tokens issued across multiple blockchains. Additionally, $76.2 million is allocated for providing liquidity for the token on the Tron network. Tether’s response comes after Circle announced the immediate discontinuation of minting USDC on Tron and gradual withdrawal of support for the network, stating the decision is in line with their efforts to maintain trust, transparency, and safety of USDC. In January, a United Nations report claimed that USDT on the Tron blockchain was popular among cyber fraud and money laundering activities in Southeast Asia due to the ease, anonymity, and low transaction fees it offers. Tether disputed the report, emphasizing USDT’s traceability and its collaboration with law enforcement agencies. It mentioned that it has frozen over $300 million worth of USDT used in illegal activities, including $225 million frozen in November 2023 as part of a US investigation into a Southeast Asian human trafficking syndicate. Tron has faced criticism in the past, with allegations of involvement in international law enforcement actions and the US Securities and Exchange Commission suing the Tron Foundation and its founder, Justin Sun, for offering unregistered securities and engaging in manipulative trading.