Tether’s stablecoin USDT, which boasts a market cap of $108 billion, has expanded its presence onto The Open Network (TON), a blockchain closely linked to the Telegram messaging app.
According to a statement released during the Dubai 2049 conference, Tether has already authorized $10 million worth of USDT on TON, with $3 million issued to date.
This move is said to boost, peer-to-peer payments for Telegram’s huge base of nearly 900 million users and increase activity on the TON ecosystem. Now, users can also use the stablecoin in various decentralized finance (DeFi) apps, which really ramps up what they can do on the network.
“The launch of USDT and XAUT on TON will facilitate seamless value transfer, augmenting activity and liquidity and providing a financial experience comparable to traditional finance systems,” stated Tether CEO Paolo Ardoino.
TON, originally launched by Telegram but now running independently due to past regulatory hurdles, has seen its usage skyrocket. The number of monthly active addresses has surged from under 100,000 to over 1.7 million in just six months. Telegram has also started using TON’s native token, toncoin, for payments on its ad platform.
Despite a rollercoaster day that saw toncoin drop by as much as 15% following the announcement, it’s still up 7% over the past 24 hours and has tripled in value this year, pushing its market cap close to $25 billion.
To boost TON adoption, trading fees within the ecosystem have been slashed, Halil Mirakhmed, the chief operating officer of Wallet in Telegram, explained. “Within the Ton Space ecosystem, USDT on TON is the only available option, which simplifies the user experience for those embedded in the TON ecosystem,” Mirakhmed added.
In addition, Ramp Network, a fintech firm that bridges crypto with traditional banking, has announced it will support the buying and withdrawing of USDT on TON. Initially, this will involve on-ramping from fiat currencies via its website, with plans to add off-ramp capabilities down the line.
“Crypto transactions should be as simple as texting,” said Ramp CEO Szymon Sypniewicz. “We look forward to seeing how enabling access to instant, low-cost crypto transactions can improve the lives of hundreds of millions of users in the TON ecosystem.”
