Key points:

  • Telegram has added support for Tether (USDT), the world's largest stablecoin, on its wallet bot.

  • Users can now send and receive USDT directly from their chat, as well as buy, trade, and make P2P transactions with stablecoins.

  • Telegram chose to integrate USDT on Tron because of its compatibility with wallet bots as well as the advantages of low fees and fast transactions.

  • USDT integration on Telegram has helped accelerate crypto adoption by bringing stablecoin payments to millions of users, including those who may not be familiar with or interested in cryptocurrencies.

Telegram, the popular messaging app with over 55 million daily users, recently added support for Tether (USDT), the world's largest stablecoin, on its wallet bot. This means users can now send and receive USDT directly from their chat, as well as buy, trade, and make P2P transactions with the stablecoin.

In this blog post, we will explore what this integration means for Telegram, Tether, Tron, and the entire cryptocurrency industry.

What is Tether and why is it important?

Tether is a cryptocurrency pegged 1:1 to the US dollar, meaning each USDT token is backed by a dollar reserve. Tether aims to provide a stable and transparent alternative to fiat currencies, as well as a bridge between the traditional and cryptocurrency worlds.

Tether is the most widely used stablecoin in the crypto market, with a market capitalization of over 78 billion USD as of March 2023. It is also the most liquid and most traded cryptocurrency, accounting for more than half of all cryptocurrency trading volume.

Tether runs on several blockchains including Bitcoin, Ethereum, Tron, EOS, Solana and Algorand. Each blockchain has its own version of USDT, with different features and technical advantages. For example, USDT on Ethereum follows the ERC20 standard, while USDT on Tron follows the TRC20 standard.

What is Tron and why did Telegram choose it?

Tron is a blockchain platform focused on file storage and decentralized content distribution. It was founded by Justin Sun in 2017 and has its own token called TRX. Tron claims to provide high scalability, low fees, and fast transactions to its users and developers.

Telegram chose to integrate USDT on Tron because of the network's compatibility with its wallet bot, which already supports Bitcoin and Telegram's own token TON. TON stands for Telegram Open Network, which is a project that aims to create a decentralized and scalable blockchain platform for Telegram's ecosystem. However, TON was discontinued by Telegram in 2020 after encountering legal issues with the US Securities and Exchange Commission (SEC).

By adding USDT to Tron, Telegram hopes to increase its cryptocurrency capabilities and provide more options for users. According to Telegram's announcement:

“You can now buy, trade and make P2P trades with Tether USDT (TRC20). You can also directly send USDT to your friends without transaction fees.”

What does this integration mean for crypto adoption?

The integration of USDT on Telegram's wallet bot is an important development for the cryptocurrency industry as it brings stablecoin payments to millions of users who may not be familiar or interested to crypto.

Stablecoins offer many of the benefits that other cryptocurrencies offer, but without the price volatility that often plagues Bitcoin (BTC) and Ethereum (ETH). They can be used as a store of value, medium of exchange, unit of account, and hedge against inflation. They can also facilitate cross-border remittances, e-commerce transactions, DeFi applications, and more.

Telegram's integration of USDT on Tron is a positive step for cryptocurrency adoption as it exposes millions of users to the advantages of stablecoins and blockchain technology.

By enabling USDT payments on Telegram, users can enjoy these features without having to leave the chat or download another app. They can also access an open and global market of buyers and sellers accepting USDT as a form of payment.

Furthermore, by choosing USDT over Tron, users can benefit from the low fees and fast transactions that Tron offers compared to other blockchains. This could make USDT payments more convenient and accessible to users who may not want to deal with high gas fees or network congestion.

In summary, Telegram's integration of USDT on Tron is a positive step for cryptocurrency adoption, as it exposes millions of users to the advantages of stablecoins and blockchain technology. It also shows that Telegram remains committed to supporting crypto innovation despite the TON setback.

The article Telegram's Tether Integration Has Contributed to Boosting Crypto Applications was first published on Cryptopress.