- Tron founder Justin Sun recently announced that upgrading the USDD stablecoin will be the network’s “top priority” for the final quarter of the year.
- Justin Sun plans to leverage the strong financial position of its native cryptocurrency, TRX, which has a market value of $16 billion.
Justin Sun, Tron’s founder, recently announced a USDD stablecoin upgrade as a main priority for the year’s last quarter. The stablecoin was launched back in 2022 and was issued as a TRC token on the Tron network. TRC tokens are an important part of the blockchain running on the smart contract network and controlling a cumulative market capitalization of over $1 billion.
Since Tron’s inception in 2017, it has carved out a substantial presence in the crypto ecosystem, moving from the Ethereum blockchain to its blockchain reinventing itself as a decentralized application blockchain to create a decentralized internet.
Justin Sun announced on X that Tron plans to enhance its stablecoin, USDD, by the end of this year. A stablecoin like USDD is a type of cryptocurrency designed to maintain a stable value, often tied to assets like the US dollar. As part of his plan, USDD will be recognized as the top stablecoin in the decentralized finance (DeFi) market.
To achieve this, Tron will leverage the strong financial position of its native cryptocurrency, TRX, which has a market value of $14 billion and high liquidity of over $200 million. These financial resources will help keep USDD stable and ensure there’s enough support for users. The planned upgrade, therefore, aims to make USDD a more reliable and prominent choice in the stablecoin market.
By giving full visibility into how reward accounts operate and setting specific rules for when and how USDD can be issued, Sun hopes to build user trust. This transparency means users can better understand and have confidence in the stablecoin’s value and stability.
Bitcoin Could Be Added to the USDD Collateral Mix
Sun mentioned that Tron may use Bitcoin (BTC) as collateral for USDD in the future, which means Bitcoin would help back up USDD’s value. This could make USDD more stable and trustworthy since Bitcoin is a well-established asset. For now, USDT will be the main way users can exchange for USDD. USDT is issued by Tether Limited, a Hong Kong-based company founded in 2014, and as of 2024, USDT is still the world’s most widely used stablecoin, with a market cap of over $110 billion.
By making these improvements, Tron hopes to strengthen USDD’s reputation and usage in DeFi. The ultimate goal is to make financial services universally available, similar to basic needs like water and air. Sun envisions a world where financial tools, like stablecoins, are accessible to everyone as a human right.
Tron’s Impact on the Crypto Market
As previously reported by CNF Tron’s financial performance in the third quarter of 2024 showcased a notable increase in revenue, which rose by 6% compared to previous periods, reaching a total of $151.2 million. This growth was largely fueled by the surge in popularity of meme coins this year. Meme coins created on the Tron blockchain include Sundog (SUNDOG), Tron Bull, and Invest Zone (IVFUN).
Currently, Tron is attempting to break through the important resistance point at $0.1690, its highest level this year. The trading volume for the TRX has risen by 2.49% over the last 24 hours. This brings the circulating supply to 86.49 billion. Over the past 24 hours, TRON’s price dropped 1.01% to $0.1638.
