Tether’s Silent Move: Dropping USDT on Tron?

Tether, the issuer of the largest stablecoin, did not provide a clear answer about its support for the Tron network after its rival Circle announced it would stop minting its stablecoin on the blockchain. Tether stated that its tokens are issued on multiple blockchains, and it retains the ability to freeze transactions on each supported blockchain for compliance purposes. The company assured its community that it actively monitors the safety of each blockchain to maintain high standards.

According to data from CoinGecko, Tether has a market capitalization of $97.7 billion, while Circle’s USD Coin has a market capitalization of $28 billion. The Tron network hosts over 51.8 billion USDT, which accounts for over half of the total USDT tokens issued across multiple blockchains. Nearly $76.2 million is reserved to provide liquidity for the token specifically on the Tron network.

Circle’s announcement on February 20 stated that it would immediately cease minting USDC on Tron and gradually phase out support for the network. The company justified its decision by emphasizing the importance of maintaining trust, transparency, and safety for USDC users. Tether’s response did not confirm whether it would follow a similar path.

Last month, a United Nations report highlighted the usage of USDT on the Tron blockchain for cyber fraud and money laundering activities in Southeast Asia. Tether, Disputed the report, arguing that it overlooks the traceability of USDT transactions and the company’s collaboration with law enforcement agencies. Tether also pointed out that it had frozen substantial amounts of USDT involved in criminal activities, including a significant sum as part of a United States investigation into a trafficking syndicate.

In November, the Campaign for Accountability, an ethics watchdog group, sent a letter to the United States Congress alleging that Tron had been implicated in international law enforcement actions involving large transactions conducted by organized crime groups and sanctioned entities. The U.S. Securities and Exchange Commission filed a lawsuit against the Tron Foundation and its founder, Justin Sun, accusing them of offering unregistered securities and engaging in manipulative trading. Sun has denied these allegations.