Tether won’t confirm or deny if it’s dropping USDT on Tron
Stablecoin issuer Tether didn’t provide a definitive answer on whether or not it would cease support for the Tron network after its rival Circle stopped minting its stablecoin on the blockchain on Tuesday, Feb. 20.
“Tether tokens are issued on several blockchains, which are simply transport layers for such tokens,” Tether said in a statement to Cointelegraph when asked for comment about Circle and whether Tether was considering a similar move.
“Tether retains the ability to freeze transactions on each directly supported transport layer to accomplish its compliance duties. Nevertheless Tether actively monitors the safety of each one of the supported transport layers to ensure the highest standards to our community,” the firm said.
Tether ( USDT ) is the largest stablecoin with a market capitalization of $97.7 billion, and Circle’s USD Coin ( USDC ) trails at $28 billion, according to CoinGecko data.
The Tron network is home to over 51.8 billion USDT, comprising over half of the nearly 101 billion USDT tokens issued across multiple blockchains, according to Tether’s transparency report dated Feb. 21.
An additional $76.2 million is set aside to provide near-term liquidity for the token on the Tron network.
Tether’s comments came in response to an announcement from Circle on Feb. 20, with the firm revealing it was immediately ending the minting of USDC on Tron and would gradually phase out support for the network, saying the decision aligns with “efforts to ensure that USDC remains trusted, transparent and safe.”
In January, a United Nations report said “USDT on the Tron blockchain has become a preferred choice” for cyber fraud and money launders in Southeast Asia due to the “ease, anonymity, and low fees of its transactions.”
Tether rebuffed the report , saying the UN ignored USDT’s traceability and the firm’s record of law enforcement collaboration.
It highlighted that it froze over $300 million worth of USDT used in crime “within the last few months,” including $225 million worth frozen in November 2023 as part of a United States probe into a Southeast Asian human trafficking syndicate.
Related: Y Combinator calls on startups to build stablecoin, metaverse, AI solutions
Ethics watchdog group Campaign for Accountability wrote to United States senators in November 2023, alleging Tron “has been named in multiple international law enforcement actions involving billions of dollars in transactions by alleged organized crime groups and sanctioned entities.”
The U.S. Securities and Exchange Commission sued the Tron Foundation and founder Justin Sun in March 2023, alleging they offered unregistered securities and conducted manipulative trading, which Sun denies.
Magazine: Unstablecoins: Depegging, bank runs and other risks loom
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Best 100x Crypto Opportunities Right Now – Nexchain Leads, Unstaked & BTC BULL Follow
Discover top crypto presales in 2025: Nexchain, Unstaked & BTC BULL offer AI, utility, and big ROI potential—get in early today!Nexchain: AI Layer 1 Blockchain Presale Gains SpeedUnstaked: No-Code AI Tools Draw Big CapitalBTC BULL: Bitcoin-Powered Presale with Big FeaturesFinal Thoughts: Nexchain Tops Crypto Presale List

Avalon Labs Burns 80M Tokens in Major Supply Cut
Avalon Labs burns 80M AVL tokens, slashing its supply by 44% after unclaimed airdrop allocations.Background on the Airdrop and Burn DecisionAvalon’s Roadmap and Strategic Backing

Trader Turns $171K Into $9.3M with $KTA in 3 Months
A savvy trader makes a 54x return on $KTA, turning $171K into $9.3M in just three months.Inside the Trade: How It HappenedWhat This Means for Other Investors

Altcoins & ETH Set to Outperform as Market Follows 2020 Roadmap
Crypto market mirrors the 2020/2021 trend. Altcoins and ETH could outpace Bitcoin in the coming months.Crypto Market Sticking to a Familiar PathAltcoins and ETH Ready to OutperformWhat to Expect in the Coming Weeks

Trending news
MoreCrypto prices
More








