Justin Sun, the founder of Tron, has announced plans for the development of a gasless stablecoin solution aimed at enabling free peer-to-peer transfers for all users. This initiative is slated to debut on the Tron blockchain in the fourth quarter of this year, with subsequent integration planned for Ethereum and other public chains compatible with the Ethereum Virtual Machine.
According to Sun, the stablecoin solution will eliminate the need for gas tokens during transfers, with transaction fees fully covered by the stablecoins themselves. However, specific details on the operational mechanics were not disclosed in Sun’s statement on July 6.
Sun believes that these gas-free stablecoins could revolutionize the landscape for companies interested in providing stablecoin services. Tron currently dominates the peer-to-peer stablecoin transfer market, consistently processing significantly higher volumes compared to its closest competitor, Ethereum, as noted by blockchain analytics firm Artemis.
Tron hosts over $50 billion of Tether’s total value of $112 billion issued across multiple blockchains, based on data from DeFiLlama. This substantial presence underscores Tron’s significance in the stablecoin ecosystem.
In potential competition with PayPal’s PYUSD, which facilitates free cross-border payments for select U.S.-based users, Tron’s initiative could offer a compelling alternative. Additionally, solutions like Circle’s USD Coin (USDC) on Ethereum’s layer 2 via Coinbase Wallet already enable fee-free transfers.
Recent decisions by Circle and cryptocurrency exchange Binance to withdraw support for USDC on Tron might have spurred Tron’s drive to develop its own solution. Furthermore, Tron is exploring the creation of a layer 2 solution for Bitcoin that would support a “wrapped” version of Tether, potentially fostering substantial capital inflows into the Bitcoin ecosystem.
In the interim, Tron is leveraging existing cross-chain protocols to facilitate the seamless transfer of USDT and other tokens between Bitcoin and Tron. This strategic move underscores Tron’s commitment to expanding its influence in the broader cryptocurrency market.
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– Justin Sun