Justin Sun, the founder of Tron, has announced that his team is currently developing a gasless stablecoin solution aimed at enabling free peer-to-peer transfers for all users. Sun is optimistic about incorporating this stablecoin solution within the Tron blockchain by the end of the fourth quarter, with plans to extend its integration to Ethereum and other Ethereum Virtual Machine-compatible public chains shortly thereafter.
In a post dated July 6th, Sun outlined that transactions could be executed without the need for gas tokens, as the fees would be completely covered by the stablecoins themselves. However, specifics regarding the operational mechanics of this system were not elaborated upon.
Sun envisions that this gas-free stablecoin concept could revolutionize the landscape for companies seeking to provide stablecoin services. Notably, Tron currently dominates the market for peer-to-peer stablecoin transfers, consistently processing double to triple the transaction volume compared to its closest competitor, Ethereum, as highlighted by blockchain analytics firm Artemis in a post on June 27th.
Tron hosts over $50 billion of Tether’s ($USDT) total value of $112 billion issued across various blockchains, according to data from DeFiLlama. Sun’s vision for a gas-free stablecoin could potentially challenge PayPal’s PYUSD service, which permits certain U.S.-based users to conduct cross-border payments free of charge.
Moreover, the Circle CEO has predicted that stablecoins will represent 10% of the global money supply within the next decade. Tron’s initiative may face competition from other platforms such as Circle’s USD Coin (USDC) on Ethereum’s layer 2 Base via Coinbase Wallet, which also facilitates feeless transfers.
Interestingly, both Circle and the cryptocurrency exchange Binance recently withdrew their support for USDC on Tron, potentially motivating Tron to establish its own solution. Furthermore, Tron is exploring the development of a Bitcoin layer 2 mechanism that would back a “wrapped” version of Tether, enabling significant capital inflow into the Bitcoin ecosystem. At present, Tron is leveraging existing cross-chain protocols to bridge USDT and other tokens between Bitcoin and its own platform.
In an article examining the vulnerabilities of Ethena’s stablecoin model, various hidden risks are brought to light, challenging conventional viewpoints on the subject.