Tether, the company behind the $108 billion market cap USDT, has expanded its offerings on Telegram’s The Open Network (TON), introducing its U.S. dollar-pegged USDT and the gold-pegged Tether Gold (XAUT) stablecoins.
CEO Paolo Ardoino, speaking at Dubai’s Token2049 event, announced this strategic expansion into Telegram’s Web3 ecosystem, aiming to revolutionize peer-to-peer payments and integrate seamless financial services for its over 900 million monthly active users.
Telegram, a privacy-focused messaging app, has recently embraced TON—a blockchain initially developed by Telegram and now operated independently. The platform has made a significant shift from using euros to Toncoin, TON’s native token, by integrating it into Telegram’s ad buy and revenue-sharing programs, as the company announced.
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Pavel Durov, the founder of Telegram, emphasized at the Token2049 conference that the platform continues to lead in blockchain integration, from tokenizing usernames to enhancing user monetization through innovative blockchain applications.
Recently, Tether faced criticisms about “unbaked” printing of $1 billion in USDT, minted for “inventor replenish,” in Paolo Ardoino words.
Financial innovations and market impact
Interestingly, Tether’s transparency report revealed an authorization of $10 million worth of USDT on the TON blockchain, with $3 million already issued, signifying a strong start.
We’re excited to bring USDT and XAUT to The Open Network because we support its vision of an open and decentralized internet and a borderless financial system. The launch of USDT and XAUT on TON will allow seamless value transfer, increasing activity and liquidity while offering users a financial experience that can match those found in the traditional financial system.
Paolo Ardoino, CEO at Tether.
Following Tether’s announcement, Ramp Network disclosed plans to enable purchases and withdrawals of USDT on TON. This enhancement will facilitate easier access to cryptocurrencies via fiat on-ramps, potentially enriching the TON ecosystem with new users and increased transaction volume.
Crypto transactions should be as simple as texting,” remarked Ramp CEO Szymon Sypniewicz, indicating the future direction of crypto transactions on the platform.
Market response
Notably, the anticipation surrounding Tether’s announcement has led to a notable surge on April 19th, 2024. Toncoin experienced a noteworthy price movement. The price surged over 14.8% within a 24-hour window, reaching a peak of around $7.15, although it faced fluctuations due to market dynamics.
The trading volume spiked by more than 90%, reflecting heightened trader interest and optimism about the potential impact of these developments on the cryptocurrency market.
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