Stablecoin issuer Tether has provided a final answer on whether it will discontinue support for the Tron network after rival Circle stopped minting stablecoins on the blockchain on Tuesday. There wasn’t.
“While Tether tokens are issued on multiple blockchains, they are simply a transport layer for such tokens,” Tether said in a statement on Circle and whether Tether is considering a similar move. said in a requested statement to Cointelegraph.
“Tether retains the ability to freeze transactions at each directly supported transport layer to meet compliance obligations. “We actively monitor safety and ensure the highest standards for our community,” the company said.
Tether (USDT $1.00) is the largest stablecoin with a market capitalization of $97.7 billion, followed by Circle’s USD Coin (USDC $1.00) with $28 billion, according to data from CoinGecko.
According to Tether’s Transparency Report dated February 21, the Tron network holds more than 51.8 billion USDT, representing more than half of the approximately 101 billion USDT tokens issued across multiple blockchains. .
Nearly $76.2 million more will be set aside to provide short-term liquidity for tokens on the TRON network.
The screenshot of Tether’s USDT transparency report has been cropped to only show USDT’s top three blockchains and their total assets.Source: Tether
Tether’s comments are in response to Circle’s February 20 announcement that the company will immediately end USDC minting on Tron and gradually phase out support for the network. , said the decision is “consistent with USDC’s efforts to ensure safety.” Stay trusted, transparent and secure. ”
Last month, a United Nations report said the “ease of transactions, anonymity and low fees” make “USDT on the Tron blockchain the preferred option” for cyber fraud and money laundering in Southeast Asia. Ta.
Tether rejected the report, saying the UN ignored USDT’s traceability and record of cooperation with law enforcement agencies.
The report found that $300 million worth of USDT used in crimes, including $225 million worth frozen in November 2023 as part of a U.S. investigation into human trafficking syndicates in Southeast Asia, had been removed “within the past few months. He emphasized that it was frozen.
The ethics watchdog group Campaign for Accountability sent a letter to the U.S. Congress in November saying that Tron “has been involved in multiple international law enforcement actions involving multibillion-dollar transactions by alleged organized crime groups and sanctioned entities. “He has been nominated,” he claimed.
In March 2023, the U.S. Securities and Exchange Commission charged the TRON Foundation and founder Justin Sun with offering unregistered securities and engaging in manipulative trading, charges Sun denies.
