USDT on TON
Tether launched USDT (USD Tether) on TON Blockchain to provide a simple and user-friendly means of sending digital dollars among Telegram users. It is available to all Telegram users through the integrated wallet app accessible on the app menu and via texting.
USDT is a stablecoin that is pegged to the value of the US dollar and is backed by reserves held by Tether. This means that a corresponding amount of USD fiat is held in Tether's reserves for every USDT token that is created on the blockchain. As a stablecoin, the value of USDT will always be equivalent to one US dollar. This makes it unaffected by volatility and desirable for day-to-day transactions.
History
On April 19, 2024, during the Token 2049 conference, Paolo Arduino (CEO, Tether), Andrew Rogozov (CEO, TOP), and Pavel Durov (CEO & founder, Telegram) announced the integration of native USDT on TON, providing free, easy and simplified means for Telegram users to make crypto transactions; demystifying blockchain technology and also aiding TON’s mission of crypto mass adoption. Before the launch of USDT by Tether, USDT was exchanged from other blockchains such as Ethereum through bridging and is denoted as ‘jUSDT’ – with «j» meaning jetton, the given name for tokens on TON.
On May 27th, 2024, TON Blockchain began its transition from jUSDT to native USDT, encouraging jUSDT holders to migrate to USDT.
The bridging of jUSDT from Ethereum to TON was closed on June 10th, 2024. However, the transfer of jUSDT from TON to Ethereum will be supported until no wallets are holding the wrapped USDT. Users can now swap native USDT from other blockchains to TON using exchanges or swap protocols like Uniswap for Ethereum.
By August 11, 2024, 619 million USDT was circulating on TON.
Use Cases
Funds Transfer
Telegram users can send digital dollars to their contacts as easy as sending text messages. The transaction is free and instant, and unlike traditional blockchain transactions, there is no need for a wallet address.
Business purposes and payments
Businesses that accept payments in crypto may prefer being paid with stablecoins such as USDT, as this protects them from the volatility of the crypto market. The launch of USDT on TON allows businesses to receive crypto payment for their services directly on Telegram, promoting accessibility and inclusion of basic users to Blockchain technology.
Trading
Trading is one of the most populous uses of stablecoins in the crypto space. USDT can be used to buy, sell, and exchange for other assets. Before stablecoins were introduced, crypto transactions were carried out by exchanges and traders by swapping a crypto asset to fiat or other crypto tokens (OTC trading).
Hedging
When users want security against the volatile nature of the crypto market, they can swap that cryptocurrency to a stablecoin and get a fixed value for their tokens. USDT can be used to hedge against unfavorable market conditions and storing assets digitally without the need for fiat conversion.
Without a fixed price, cryptocurrencies are volatile and unfavorable for businesses and every-day transactions (payments, bookings, bills, etc).This is why stablecoins are important, requiring TON to import USDT from other blockchains to have a stable economy.
Buying USDT on TON
USDT-TON can be purchased through:
P2P platforms
USDT can be purchased directly on P2P platforms available on Wallet, CryptoBot, XRocket, and other supported exchanges. The Peer To Peer (P2P) market allows users to conduct transactions with no intermediaries. Users can buy and sell USDT for fiat or another cryptocurrency directly from other users.
Exchanges
Users can buy USDT on exchanges using their bank cards or swap another cryptocurrency for USDT.
Bridging
USDT can also be transferred from another blockchain to TON through supported bridge or swap services like TON bridge.
TON Wallets
Users can also buy USDT directly on TON wallets using a credit or debit card. Some prominent wallets on TON Ecosystem are Wallet in Telegram, Tonkeeper, and MyTonWallet.
Integration
TON Blockchain aims to integrate with over 100 services worldwide to promote the global adoption of crypto without borders. This is an overview of some notable services fostering crypto adoption.
Fizen USDT gift shop (Telegram Bot)*
Fizen is an all-in-one crypto hub for travelers and expats, providing payment services in crypto from gift cards to airlines and hotel bookings across 178 countries. The Fizen USDT gift shop is a Telegram mini app that provides credit and data top-up solutions to Telegram users across 70+ countries, providing a borderless payment solution to network services. Payment is made using USDT-TON.
Telega
A leading Telegram advertising platform. Telega has a network of 6K+ channels and groups which it connects with brands and individuals seeking engagement and outreach through advertisement. Advertisers and channel owners can make and receive payments on Telega using $Toncoin and USDT.
ChangeNow
A non-custodial cryptocurrency exchange platform supporting more than 900 assets and 75 blockchains. ChangeNow allows users to swap USDT-TON across its supported tokens.
Oobit
A crypto payment solution like Google Play and Apple Pay services. Oobit, backed by Tether, allows businesses to accept payment in different cryptocurrencies and enable users to pay for everything using crypto. With over 100 million retailers worldwide, the platform recently added support for payments using $Toncoin and USDT.
Travala
A crypto travel booking company providing over 3 million travel services. Travala is available in more than 230 countries, enabling users to pay for hotels and flights using USDT.
Uquid
An Indonesian online shopping platform now accepting USDT payments on TON. Uquid also allows users in the Philippines to pay government dues using USDT.
USDT-TON continues to integrate into other supported services like AvanChange, DFNS, Cobo, NowNodes, and Flipster.
Incentives Program
To celebrate the launch of USDT on TON, TON Foundation launched activities to reward USDT users and incentivize the adoption of USDT. Some of the activities are listed below:
Wallet Earn
Telegram users can deposit USDT to their wallet with no lock period and receive 50% APY (Annual Percentage Yield) for 2 weeks and 25% APY for another 2 weeks with a maximum deposit of 3,000 USDT per user.
Liquidity pool boost
Users can provide liquidity on TON/USDT pairs on DEXes STON.fi and DeDust, and receive passive rewards from the pool. The pool reward is intended to run until the end of 2024.
Free withdrawals
USDT withdrawal fees on all exchanges supporting TON were waived until June 2024. Transfer between Telegram contacts is always free.
Learn and Earn programs
After the launch of USDT on TON, exchanges Bybit, OKX, and Kucoin began to roll out L2E (Learn To Earn) programs to increase awareness of the advancement on TON, educating their users and rewarding them in USDT and $Toncoin when they complete the programs.
The launch of USDT on TON plays an integral role in onboarding everyday users into Web3, blockchain technology, and Cryptocurrencies. It also serves as a haven against market volatility to keep the whole TON Ecosystem stable.