Tether, the leading stablecoin issuer with a $97.7 billion market cap, continues to operate on the Tron network despite security concerns that led another company to stop issuing its stablecoin on Tron. This move by Tether underlines commitment to maintaining stable digital transactions globally.
The company stressed that it monitors all transport layers for regulatory compliance and security for users. Tether reaffirmed it prioritizes safety of user funds and operation integrity, emphasizing transparency and regulation adherence. The partnership with Tron is considered strategic in Tether’s multi-chain operation expansion. According to Tether’s transparency report, over half of nearly 101 billion USDT are held on the Tron network.
However, the UN flagged the Tron blockchain’s USDT as a platform potentially used for unregulated activities such as cybercrime and money laundering, primarily due to the platform’s global reach, anonymity, and low transaction fees. The international agency urged nations and financial institutions globally to monitor transactions from this platform closely.
In response, Tether underscored USDT’s traceability and the positive relationship with law enforcement agencies. The company highlighted the recent freezing of over $300 million in USDT linked to illegal activities as proof of commitment to security. They adhere to strict anti-money laundering and know-your-customer requirements and continue to cooperate with law enforcement.
The Tron network and founder, Justin Sun, face questions related to unauthorized securities sales and suspicious trading practices, but Sun denies these claims. Tether has not publicly stated its future Tron network operations plans. Whether Tether will continue its Tron partnership amid these controversies remains uncertain. Meanwhile, stakeholders and industry observers await Tether’s next move keenly.
