USDT on TON A Detailed Overview

The integration of Tether (USDT) with The Open Network (TON) blockchain represents a significant development in the cryptocurrency space, offering users a fast, low-cost, and convenient way to transact with a widely-used stablecoin. This article provides a detailed overview of USDT on TON, covering its benefits, how it works, current trends, and important considerations for users. Today’s date is 07:54:50 ().

What is TON and Why USDT?

The Open Network (TON) was originally conceived by Telegram and is now developed by the TON Foundation. It’s designed for speed and scalability, boasting impressive transaction processing capabilities – recently achieving over 104,655 transactions per second (TPS) in stress tests. This makes it an ideal blockchain for handling the volume of transactions associated with a popular stablecoin like USDT.

Tether (USDT) is the most widely used stablecoin, pegged to the value of the US dollar. Its stability makes it a crucial tool for traders, investors, and anyone looking to avoid the volatility of other cryptocurrencies. Bringing USDT natively to TON enhances its utility and accessibility.

Key Benefits of Using USDT on TON

• Low Transaction Fees: TON’s architecture allows for significantly lower transaction fees compared to networks like Ethereum, making USDT transactions more affordable.
• Fast Transaction Speeds: The high TPS of TON ensures quick confirmation times for USDT transactions.
• Seamless Integration with Telegram: The close relationship between TON and Telegram allows for easy USDT payments directly within the messaging app – essentially making crypto transactions as simple as sending a text message.
• Growing Ecosystem: TON is rapidly expanding its ecosystem with services like TON Storage (encrypted storage), TON Proxy (decentralized VPN access), and TON DNS (decentralized website names).
• Increased Accessibility: The integration broadens access to USDT for Telegram’s massive user base.

How is USDT on TON Different?

Previously, to use USDT with TON, users often had to rely on bridging solutions – transferring USDT from another blockchain (like Ethereum) to the TON network. Now, USDT is being issued natively on TON, meaning it’s directly built into the blockchain. This eliminates the need for bridging, reducing complexity and potential risks.

Current Trends and Growth

The adoption of USDT on TON has been remarkable. In May 2024, the value of USDT held on the TON blockchain was around $130 million. However, within just six months, this figure surged by 670% to over $1.02 billion, and continues to grow. As of recent reports, the supply has even crossed $500 million after just two months of rollout. This demonstrates a clear preference for TON among users seeking efficient stablecoin transactions.

The overall USDT supply is currently around 120 billion, with predictions of reaching 200 billion during a potential bull market. This anticipated growth will likely further drive demand for TON as a fast and cost-effective network for handling USDT transactions.

Important Considerations for Users

• Wallet Compatibility: Ensure your wallet supports USDT on the TON network. Not all wallets currently do. You may need to use a TON-specific wallet application or dApp. For example, Phantom currently does not support TON, but you can bridge USDT to networks Phantom does support.
• Blockchain Selection: When sending or receiving USDT, always double-check that you are using the TON network. USDT exists on multiple blockchains, and sending to the wrong network can result in permanent loss of funds.
• Exchange Support: While Bitfinex now supports USDt deposits and withdrawals across 18 blockchains (including TON), not all exchanges currently offer native TON support. Coinbase, for example, currently only supports USDT on the Ethereum blockchain (ERC-20). Check with your exchange to confirm compatibility.
• Security Best Practices: Always prioritize security. Use strong passwords, enable two-factor authentication, and be cautious of phishing scams.

The Future of USDT on TON

The collaboration between Tether, TON Foundation, and Telegram is expected to continue, with plans for educational campaigns to promote the adoption of digital assets and facilitate cross-border payments. TON’s integration with LayerZero further enhances its cross-chain capabilities, connecting it to the broader USDT ecosystem.

The recent launch of the W5 smart wallet standard by the TON Core team, in collaboration with Tonkeeper, promises even greater security and usability for TON users.