Tether Expands Supremacy with Strategic Alliance with TON Foundation

Tether has partnered with the TON Foundation to issue Tether (USDT) and Tether Gold (XAUT) stablecoins on The Open Network (TON) blockchain. This integration facilitates cross-border payments for Telegram's 900 million users through direct messaging, eliminating the need for blockchain addresses or external apps. The issuance of USDT on TON marks Tether's expansion into a new blockchain, following its dominance on Ethereum, Tron, and others, further solidifying its leadership in the stablecoin market.

Tether Extends Dominance: Strategic Partnership with TON Foundation

In a move to further solidify its dominance in the stablecoin market, Tether Operations Limited, the issuer of the largest stablecoin by market capitalization, Tether (USDT), has announced a significant collaboration with the TON Foundation. This partnership marks the integration of USDT onto the Open Network (TON) blockchain, expanding Tether's reach and enhancing its capabilities.

USDT Issuance on TON: A Catalyst for Growth

The collaboration between Tether and the TON Foundation commenced with the listing of USDT on the TON blockchain on April 19, 2024, during the Token2049 cryptocurrency conference in Dubai. In addition to USDT, Tether also introduced the gold-pegged Tether Gold (XAUT) stablecoin on TON, further diversifying its offerings on the network.

Tether CEO Paolo Ardoino expressed enthusiasm about this partnership, stating that it has already seen a successful start. As of 11:30 pm UTC on April 21, 2024, approximately $60 million worth of USDT had been issued on TON.

Benefits of TON Integration

The integration of USDT on TON offers several advantages, including:

• Cross-Border Payments Simplified: The Open Network team highlighted the benefits of this integration for cross-border payments. With TON, such transactions become instant, accessible, and as seamless as sending a text message to Telegram's 900 million users.
• Seamless Telegram Integration: One key advantage of USDT's presence on TON lies in its integration with Telegram's messaging platform. TON Foundation announced that Telegram users can now effortlessly and instantaneously transfer funds between all platform users without requiring blockchain addresses or downloading additional applications. Direct messaging (DM) suffices for these transactions.
• Comprehensive On- and Off-Ramps: The integration will feature integrated on-ramps from various fiat currencies worldwide at its launch. Additionally, global off-ramps will soon allow users to withdraw supported fiat currencies directly to their designated bank accounts or debit/credit cards, streamlining the process for enhanced convenience and accessibility.

Reinforcing Market Dominance

Tether's expansion into TON further strengthens its dominant position in the stablecoin market. Despite this new integration, the majority of Tether's $109.8 billion circulating supply remains on the Tron (TRX) network, with $57.8 billion issued. Ethereum follows with $51 billion USDT in circulation, although this amount has been declining as Tether distributes its stablecoin over multiple blockchains to mitigate high network costs on Ethereum.

Solana is the third largest network supporting Tether, with $1.9 billion issued. Tether has also been issued on Avalanche, Omni, Cosmos, Tezos, Near, EOS, and Celo, among others.

Unprecedented Market Dominance

According to CoinGecko data, Tether enjoys a substantial 69% market share in the stablecoin market capitalization, accounting for approximately $159.5 billion. Its closest rival, Circle's USD Coin (USDC), holds a 21% share with $33.7 billion in circulation.

Market Response and Future Outlook

The integration of Tether with TON initially triggered a 22% surge in Toncoin's price. However, prices soon reverted to previous levels, declining by 1.6% to $6.13 at the time of writing. This suggests that the initial excitement may have been short-lived or that market forces influenced the price correction.

Tether's strategic expansion across multiple blockchains is widely anticipated to enhance its dominance in the market. Users now have more options for convenient and affordable cross-platform and cross-environment transactions.