Tron Founder Justin Sun Announces Major Upgrade for USDD Stablecoin
Justin Sun, founder of Tron, recently announced that enhancing the USDD stablecoin is a key priority for the final quarter of the year. Introduced in 2022, USDD operates as a TRC-token on the Tron network, leveraging Tron's blockchain and smart contract capabilities to maintain a stable value. This TRC-token, which plays a central role in the Tron ecosystem, contributes to a combined market capitalization of over $1 billion.
Since its founding in 2017, Tron has transitioned from being an Ethereum-based token to building its own blockchain, establishing itself as a major player in the cryptocurrency world. With this transformation, Tron has positioned itself as a network for decentralized applications (dApps) and aims to contribute to a decentralized internet.
USDD Upgrade: A Step Towards Greater Stability and Trust
Sun revealed that by the end of the year, Tron intends to improve the functionality and reliability of USDD. As a stablecoin, USDD is pegged 1:1 to the US dollar, aiming to maintain a steady price regardless of market volatility. According to Sun, the upgrade will make USDD more dependable, enhancing its appeal on the competitive stablecoin market.
To achieve this, Tron will leverage the financial strength of its own cryptocurrency, TRX, which boasts a market capitalization of $14 billion and a liquidity reserve of over $200 million. These resources will support USDD’s stability and ensure adequate backing for users. By offering full transparency on how reward accounts work and specifying rules on when and how USDD can be issued, Sun aims to foster greater trust among users. This transparency should help users understand USDD's value and stability, potentially making it a more attractive option in the stablecoin ecosystem.
Exploring Bitcoin as a Collateral Option
In a significant move for Tron's future plans, Sun indicated that Bitcoin (BTC) might be added as collateral to support USDD. Adding Bitcoin to USDD's reserve could further enhance its stability and reliability, given Bitcoin's established status and market trust. For now, however, USDT remains the primary means through which users can exchange for USDD. As the world’s most widely used stablecoin, with a market cap exceeding $110 billion as of 2024, USDT provides an essential layer of stability for USDD's trading and liquidity.
Expanding DeFi and Financial Access with USDD
With these planned upgrades, Tron seeks to bolster USDD’s reputation and usage within the decentralized finance (DeFi) sector. Sun envisions a future where financial services, particularly stablecoins like USDD, are universally accessible, treating them as basic human rights similar to essential needs like water and air. The goal is to create a more inclusive financial ecosystem where stablecoins become a standard, accessible tool for everyone.
Tron's Impact on the Crypto Market
Beyond the stablecoin upgrade, Sun emphasized to the Tron community that TRX, Tron's native token, plays a critical role in the growth of Tron-related meme coins and is on the verge of surpassing its previous all-time high. By positioning TRX as a fundamental part of Tron's ecosystem and facilitating innovative updates, Tron continues to shape its impact on the cryptocurrency market.
