Tether, the stablecoin issuer, did not provide a clear response regarding its support for the Tron network after Circle, its rival, ceased minting its stablecoin on the blockchain. When asked about Circle’s decision and whether Tether was considering a similar move, Tether stated that its tokens are issued on various blockchains, which serve as transport layers. Tether also mentioned that it has the ability to freeze transactions on each supported transport layer to ensure compliance. The firm emphasized that it actively monitors the safety of these transport layers to uphold high standards for its community.
Tether’s market capitalization stands at $97.7 billion, making it the largest stablecoin, while Circle’s USD Coin trails behind at $28 billion, according to CoinGecko data. The Tron network hosts over 51.8 billion USDT, which accounts for more than half of the total 101 billion USDT tokens issued across multiple blockchains, as stated in Tether’s transparency report.
In response to Circle’s announcement on Feb. 20, Tether made these comments. Circle revealed that it would immediately cease minting USDC on Tron and gradually withdraw support for the network to ensure the trust, transparency, and safety of USDC.
In January, a United Nations report claimed that USDT on the Tron blockchain had become a popular choice for cyber fraud and money laundering in Southeast Asia due to the ease, anonymity, and low fees it offers. Tether disputed this report, emphasizing the traceability of USDT and its collaboration with law enforcement. It also mentioned freezing over $300 million worth of USDT involved in criminal activities, including $225 million frozen in November 2023 as part of a US investigation into a Southeast Asian human trafficking syndicate.
Tron has faced allegations of involvement in international law enforcement actions and has been sued by the US Securities and Exchange Commission for offering unregistered securities and manipulative trading. However, Tron founder Justin Sun denies these allegations.
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