Tether, the issuer of the top stablecoin USDT, has announced its expansion to The Open Network (TON), a blockchain associated with the popular messaging app Telegram. This move aims to facilitate "borderless, peer-to-peer payments" through USDT and its gold-backed counterpart XAUT, catering to Telegram's vast user base. The expansion is expected to bolster TON's growing ecosystem, offering stablecoins for decentralized finance (DeFi) applications and enhancing the overall user experience.
Tether Extends USDT and XAUT Stablecoins to Telegram's Open Network (TON)
Tether, the issuer of the world's largest stablecoin by market capitalization, is expanding the presence of USDT and its gold-backed counterpart, XAUT, by integrating them natively on The Open Network (TON), a blockchain associated with the popular messaging app Telegram.
This strategic move aims to enhance the accessibility and utility of USDT and XAUT, enabling seamless and borderless peer-to-peer payments among Telegram's vast user base, which currently stands at nearly 900 million. According to a statement released during the Dubai 2049 conference, Tether's integration with TON is expected to stimulate activity and liquidity within the ecosystem, offering users a financial experience comparable to traditional financial systems.
"The launch of USDT and XAUT on TON will facilitate value transfer effortlessly, fostering increased activity and liquidity while presenting users with a financial experience mirroring that of the conventional financial system," said Tether CEO Paolo Ardoino. "This initiative aligns with our mission of empowering open financial infrastructure throughout the blockchain landscape."
The Open Network, initiated by Telegram, operates independently after the company discontinued its development due to regulatory concerns. Since then, the ecosystem has experienced remarkable growth, particularly with incentives for onboarding Telegram users, which have catapulted the number of monthly active addresses to over 1.7 million, a significant increase from approximately 100,000 six months ago, as per data from Tonstat, a blockchain analytics platform. Telegram has also recently adopted TON's native token, Toncoin, as the payment currency for its advertisement platform, replacing euros.
While Telegram's crypto wallet supports multiple blockchains for deposits and withdrawals, Halil Mirakhmed, Chief Operating Officer of Wallet in Telegram, emphasizes that "to promote the adoption of TON, trading fees are significantly reduced." He further noted that "within the Ton Space ecosystem, only USDT on TON is accessible, streamlining the user experience for those invested in the TON ecosystem."
The announcement of Tether's expansion to TON initially had a positive impact on the TON token, which experienced a rise in value earlier in the day. However, following the news, TON's value dropped by as much as 15%. Nonetheless, it remains up by 7% over the past 24 hours and has tripled in price this year, boasting a market capitalization of nearly $25 billion.
The integration of USDT and XAUT on TON is a testament to Tether's commitment to extending the reach and utility of its stablecoins, empowering users with greater accessibility and flexibility in their financial transactions. As the blockchain industry continues to evolve and mature, Tether's strategic partnerships and technological advancements position it as a driving force behind the transformation of the financial landscape.
