Tether, Tron, and TRM Labs have collaborated to fight against the misuse of USDT stablecoin.
USDT is the top-ranked stablecoin, managed by Bitfinex’s subsidiary Tether. Stablecoins are designed to facilitate money transactions without any third-party involvement and at very low cost, but some bad actors misuse these cryptocurrencies for illegal activities, such as money laundering and drug dealing.
To tackle these bad actors using the USDT stablecoin, Tether and Tron have collaborated. These two players established the first Private Financial Crime Unit with the help of TRM Labs, a firm that helps government agencies, cryptocurrency businesses, and financial institutions trace the source and destination of funds in any digital asset, and monitor transactions.
Tether, TRON and TRM Labs Establish First-Ever Private Sector Financial Crime Unit to Combat Crypto Crime Learn more: https://t.co/l18hFvQyUp
— Tether (@Tether_to) September 10, 2024
Under this new initiative, Tron DAO will use its technical expertise, and TRM Labs will contribute to trace the transactions with more accuracy and speed. Tether will take sudden action based on the investigation.
Overall, this collaboration aims to push the adoption of USDT with better safety and inject confidence among USDT users.
Tether CEO Paolo Ardoino stated that such efforts will provide more security to the rapidly expanding ecosystem of the USDT stablecoin.
$USDt has become the digital dollar for hundreds of millions of people living in emerging markets.Today USDt is a crucially important backbone for many developing countries.At Tether, we're proud to engage is initiatives like this one, to support the safety of our rapidly… https://t.co/CJ350TkpVZ
— Paolo Ardoino 🤖🍐 (@paoloardoino) September 10, 2024
Tron founder Justin Sun remarked that it is the first type of such partnership at Tron aimed at fighting illicit activities.
It's a first-of-its-kind collaboration between @trondao , @Tether_to , and @trmlabs to combat illicit activity on our network. Our goal is to create a safer, more secure crypto community, setting a new standard for the industry. https://t.co/L4SVO1h6Iq
— H.E. Justin Sun🌞(hiring) (@justinsuntron) September 10, 2024
USDT & Tron
It is worth noting that USDT is not the native token of the Tron blockchain network. In reality, there is no native network for the USDT blockchain; instead, the USDT stablecoin is supported on multiple crypto networks.
Due to efficient transactions on the Tron blockchain network, the majority of USDT users prefer to use Tron for transferring their USDT stablecoin.
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