Tron is Tron! This week was marked by the surprise – but not so surprising – abandonment of the Tron (TRX) blockchain by the number 2 stablecoin issuer, Circle. In fact, no more USDC will not be created on this network in the future. A decision motivated by security issues, the details of which still remain quite vague. The opportunity to ask whether the champion of regulatory stability, Tether, will also decide to leave Justin Sun’s rickety ship. Nothing is less sure…
Will Tether (also) cut Tron?
The society Circle created a surprise this week by deciding to abandon the Tron network. Indeed, no more USDC will be issued on this blockchain, apparently blacklisted by the number 2 in the stablecoin sector.
Is this linked to his desire to operate an IPO during this year ? Or simply a way to curry favor with regulators. This in the perspective of a bill, requested by the CEO of Circle, in order to regulate the stablecoin sector in the United States ? Maybe a little of both. But in this case, the question is elsewhere…
Indeed, the sudden defection of Circle from the Tron network raises the question of the strategy adopted by the leader of this market numerical stability. Because Tether boasts of being the champion of compliance, with the help of its new boss Paolo Ardoino. The latter apparently determined to become the – problematic – armed arm of the United States Office of Foreign Assets Control (OFAC).
But clearly, his motivation is much less important in the Tron case. Perhaps because the opportunity is too good to take its market share, even in an environment considered risky by the competition. And not only…
“Tether tokens are issued on multiple blockchains, which are simply transport layers for these tokens. »
Tether
Tron hosts over 51% of Tether’s USDT
Obviously, the Tether company is very embarrassed by Circle’s decision. Because she refuses to make any definitive comments on the subject of a possible abandonment of the Tron blockchain. And the reason is ultimately quite obvious: this network alone hosts more than 51.8 billion USDT tokens.
Figures from the latest transparency report published by Tether in February. And obviously, the Tron network is currently – and by far – the main destination for Tether USDT. This even before Ethereum (45 billion units) and Solana (1.9 billion units). Either over 51% of 101 billion USDT tokens issued on all blockchains.
This is probably the reason why the Tether company is content to play the freeze card. In fact, she explains that she is able to block funds associated with questionable transactions. And that seems to be enough to stay up on the Tron network.
“Tether retains the ability to freeze transactions on each directly supported transport layer to accomplish its compliance tasks. Nonetheless, Tether actively monitors the security of each of the supported transport layers to ensure the highest standards for our community. »
Tether
The very regulatory company Tether therefore seems to voluntarily ignore the significant use of USDT on the Tron network for criminal purposes, reported last year in an official report. But, after all, if OFAC does not give a precise order, for what reason should it be more “proactive” than the controlling body ? Even more so when the market concerned represents more than half of the strike force of this leader.