Telegram Announces USDT Stablecoin Payments on Tron Network

Tether’s stablecoin can now be sent between Telegram users. The messaging app informed its subscribers on Wednesday that the wallet function now accepts USDT-TRON, also known as TRC20.

With a market valuation of $78 billion, USDT is the third-largest cryptocurrency after Bitcoin and Ethereum. It is also a stablecoin, which means that its value is guaranteed by a stable asset, in this case the US dollar.

USDT runs on a variety of blockchains, but for the time being, Telegram will only support the asset on Tron—TRC20. Tron is the network that powers the 15th largest cryptocurrency by market cap: TRX. Tron aims to be the foundation of the decentralized Internet. Its blockchain is both low-cost and fast.

Users can, however, use stablecoins on its network. “You may now buy, exchange, and make peer-to-peer transactions with Tether USDT (TRC20),” Telegram announced, adding, “You can also immediately send USDT to your pals with no transaction fees.”

Telegram added cryptocurrency to its app in 2018, when it launched the Telegram Open Network (TON). Telegram abandoned the project in 2020 because the Securities and Exchange Commission ruled that the initial coin offering for the project was illegal.

Despite Telegram’s departure, the TON Foundation kept the project alive. Users can still purchase, sell, and send Toncoin (TON) on Telegram’s app today.

Telegram also allows users to buy Bitcoin and transmit Bitcoin to other users or Bitcoin wallets using its app. It can’t be cashed out, but it can be swapped for TON, the 23rd largest cryptocurrency by market cap.

Tether’s USDT is the most traded digital asset, with a current 24-hour trading volume of more than $45 billion, according to CoinGecko. The token is used to easily convert Bitcoin (or any other cryptocurrency) into dollars, euros, or yen on an exchange. It can then be withdrawn and deposited into a standard bank account.