Tether Expands Its Reach: USDT and XAUT Stablecoins Launch on Telegram's TON Blockchain

2024-05-08, 10:09

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![](https://gimg2.gateimg.com/image/article/1715162527sdfx.jpeg)
## [TL; DR]
The integration of USDT and XAUT with Ton Telegram will likely lead to greater adoption of digital currencies than before.

The Ton network’s low transaction fees will likely promote the use of USDT and XAUT.

<a href="/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a> has introduced new business divisions which include Tether Data, Tether Finance, Tether Power and Tether Edu. 
## Introduction 
Tether is one of the leading blockchains which promotes crypto technology as it facilitates international remittance using digital currency. There is no question that Tether USDT, ranked number 3, is one of best crypto assets due to its stability. Tether’s other stablecoin, [XAUT backed by gold](https://www.gate.io/learn/articles/what-is-tether-gold/1180 "XAUT backed by gold"), will likely make a great mark in the digital economy as well.

This analysis looks at the partnership between Tether and Telegram aimed at promoting the use of cryptocurrencies like TON, XAUT and USDT. We will also focus on the benefit derived from the launch of USDT and XAUT on the Ton Blockchain. Finally, we shall explore Tether’s new business lines that include Tether Data, Tether Finance, Tether Power and Tether Edu. 
## USDT and XAUT launching on the TON blockchain
Leading blockchain projects now leverage partnerships to provide quality services to their users. With this in mind, Tether, one of the leading blockchain service providers, has announced its plan to integrate its two stablecoins USDT and XAUT with Telegram Open Network (TON) blockchain. Paolo Ardoino, Tether's CEO, delivered the good news at the Token2049 event in Dubai.

The launch of USDT, a U.S. dollar-backed stablecoin, and XAUT, a gold-backed stablecoin, onto the TON blockchain will likely unlock many benefits to Telegram users as they increase liquidity and enable seamless exchange of value on the ecosystem. [In a statement, quoted by TheBlock, Ardoino said](https://www.theblock.co/post/289798/tether-ton-blockchain-usdt-and-gold-xaut "In a statement, quoted by TheBlock, Ardoino said"), “The launch of USDT and XAUT on TON will allow seamless value transfer, increasing activity and liquidity while offering users a financial experience that can match those found in the traditional financial system.”

Read also: [Tether Gold Price Prediction & Forecast for 2024, 2025, 2030](https://www.gate.io/price-prediction/tether-gold-xaut "Tether Gold Price Prediction & Forecast for 2024, 2025, 2030")

He added, "Telegram has an impressive ecosystem with 900 million monthly active users. Tether has more than 300 million users globally. Tether and Telegram can empower each other's ecosystems."

The integration of TON with USDT and XAUT comes at a time when the USDT market capitalization has surpassed $109 billion while that of XAUT is more than $114 billion. As you note, XAUT is the smaller of the two Tether stablecoins. On the other hand, Ton Coin, [the Ton Telegram blockchain’s native](https://www.theblock.co/price/248363/toncoin-ton-usd "the Ton Telegram blockchain’s native") cryptocurrency market cap, has surpassed $24 billion. The following graph shows the current cryptocurrency market caps. 
![](https://gimg2.gateimg.com/image/article/17151626621.jpeg)
stablecoin Market Capitalization - [TheBlock](https://www.theblock.co/data/stablecoins/usd-pegged/total-stablecoin-supply "TheBlock")

As observed, Tether USDT dominates the stablecoin market, followed by USDC. It’s strategic on the part of Tether to bring USDT and XAUT to Telegram Web3 as the stablecoin will benefit from the social media platform’s more than 900 million users worldwide. Due to the fiat to crypto transfer feature on Ton Telegram, Tether’s stablecoin launch will create a financial experience only comparable to that of the traditional financial system.

Read also: [How to Buy Tether Gold (XAUT)](https://www.gate.io/how-to-buy/tether-gold-xaut "How to Buy Tether Gold (XAUT)")

In the meantime, the value of the Ton coin increased significantly when Telegram announced its plan to use Ton coin to reward channel owners and share the revenue generated from advertisements on the platform. Presently, <a href="/price/toncoin-ton" target="_blank" class="blog_inner_link">Toncoin</a> ranked number 9 based on market capitalization, is trading at $5.25 after gaining by 5.7% within the last 30 days. The next graph shows TON’s current price performance. 
![](https://gimg2.gateimg.com/image/article/17151627092.jpeg)
Toncoin Price Chart - [CoinGecko](https://www.coingecko.com/en/coins/toncoin "CoinGecko")

As you note in the diagram, Toncoin has been nose diving since 11 April when it attained its all-time high of $7.63. Its price is currently 31.2% lower than its ATH but 910% higher than its all-time low reached on 21 September 2021. 
##  Paolo Ardoino’s And Pavel Durov’s Keynote Speeches
As we have noted, on 19 April Tether announced its intention to launch Tether USDT and XAUT on Ton Network in order to benefit from its crypto infrastructure and blockchain expansion. Ardoino, Tether CEO and Pavel Durov, Telegram founder, announced the integration at Token2049, a crypto event held in Dubai. During the event the two leaders mentioned the benefits of the partnership between Telegram and Tether.

For example, they talked about the on-ramp and off-ramp features which the Ton blockchain will have. This means that it will become easy for Telegram and Ton blockchain users to convert their cryptocurrencies to fiat money and vice versa. Specifically, Jack Booth, TON Foundation’s marketing head told [Cointelegraph about such a development](https://cointelegraph.com/news/tether-usdt-stablecoin-ton-blockchain "Cointelegraph about such a development").

[He said](https://cointelegraph.com/news/tether-usdt-stablecoin-ton-blockchain "He said"), “[There are] built-in on-ramps for fiat at the launch and global off-ramps to bank cards and accounts coming soon. This will be the first time a mass audience will be able to use crypto infrastructure for global payments.”

Tether also announced the introduction of other business lines namely Tether Data, Tether Finance, Tether Power and Tether Edu. Each of these divisions will specialize in a particular area related to blockchain technology. For instance, Tether Data will focus on the development of emerging technologies such as artificial intelligence and peer-to-peer payment systems which will further strengthen its position within the decentralized finance sector.

Read also: [Surpassing Tether as the Largest Stablecoin?](https://www.gate.io/blog_detail/4009/surpassing-tether-as-the-largest-stablecoin-everything-you-need-to-know-about-what-ethena-ena-is "Surpassing Tether as the Largest Stablecoin?")

Tether has used its blog to explain what each new business line will achieve. Regarding Tether Finance, for example, it states that it will leverage the “blockchain technology to build unstoppable financial infrastructure, including the upcoming digital asset tokenization platform, catalysing mainstream adoption of digital assets.”

On the other hand, Tether power will facilitate the development and use of sustainable energy sources. It [clarified](https://tether.io/news/tether-advances-beyond-stablecoins-introduces-new-framework-embracing-core-divisions-to-foster-resilient-future-ready-financial-systems/ "clarified"): “Tether’s mining and energy division is venturing into sustainable <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> mining operations, aligning with responsible practices to secure the integrity of the world’s most robust monetary network.”

Then, Tether Edu will focus on enhancing adoption of the blockchain as well as  promoting digital literacy on a global scale. The [blockchain firm explained](https://tether.io/news/tether-advances-beyond-stablecoins-introduces-new-framework-embracing-core-divisions-to-foster-resilient-future-ready-financial-systems/ "blockchain firm explained"): “Tether Edu is committed to expanding global access to digital skills education. With a multifaceted strategy, the division cultivates knowledge, awareness, and proficiency in digital and other cutting-edge technologies.”

Finally, regarding [Tether Finance, the blog stated](https://tether.io/news/tether-advances-beyond-stablecoins-introduces-new-framework-embracing-core-divisions-to-foster-resilient-future-ready-financial-systems/ "Tether Finance, the blog stated"), “Tether Finance is poised to spearhead leveraging blockchain technology to build unstoppable financial infrastructure, including the upcoming digital asset tokenization platform, catalysing mainstream adoption of digital assets.”

Concerning these divisions, [Ardoino said](https://www.bitdegree.org/crypto/news/tether-expands-beyond-stablecoins-with-launch-of-new-business-divisions "Ardoino said"), “Thriving together is in our DNA. We disrupted the traditional financial landscape with the world’s first [and most trusted stablecoin](https://www.gate.io/learn/articles/what-are-the-main-stablecoins/99 "and most trusted stablecoin"). Now, we’re daring to kickstart inclusive infrastructure solutions, dismantling traditional systems for fairness.”
## Impact of USDT and XAUT on TON for users and the financial ecosystem
The integration of USDT and  XAUT will bring many benefits to Telegram users as it will facilitate smooth crypto payments. Generally, the users will be able to make cheap and instant cross border payments. More significantly, there will be no need for digital wallet addresses or separate apps to send the digital currencies. As a result, transferring the digital assets will be as easy as sending Telegram messages.

Posting on X, [Ton said](https://twitter.com/ton_blockchain/status/1781294475219812665 "Ton said"), “This initiative is set to transform global peer-to-peer payments, allowing Telegram's users to send transfers freely and instantly between all Telegram users; all you need to do is send a DM, no need for a blockchain address, and no need to download a new app.”
![](https://gimg2.gateimg.com/image/article/17151628663.jpeg)
Source:[ x.com ](https://twitter.com/ton_blockchain/status/1781294479669944677 " x.com ")

The [same source added](https://twitter.com/ton_blockchain/status/1781294479669944677 "same source added"), “USDT on TON will be accompanied by fully integrated on-ramps from most fiat currencies globally at launch. Soon, integrated global off-ramps will enable users to withdraw supported fiat currencies directly to bank accounts or cards. The aim is for USDT on TON to become a faster, easier, and cheaper cross-border payment system than traditional financial services.”

The integration of USDT will lead to financial inclusion as it will be easy and cost-effective for people to send and receive digital currencies. In addition, since it will be simple to convert cryptocurrency to fiat money many people will adopt cryptocurrencies for global payments which will enrich the entire decentralized financial system.

Also, the integration will support the TON blockchain expansion as its users will be able to use stablecoins in various decentralized applications. In an interview with CoinDesk, Halil Mirakhmed, the chief operating officer of Wallet in Telegram explained how USDT will support the Ton network. [He said](https://www.coindesk.com/business/2024/04/19/tether-is-expanding-its-usdt-xaut-stablecoins-to-ton-network-transparency-page-shows/ "He said"), "Within the Ton Space ecosystem only USDT on TON is available, streamlining the user experience for those invested in the TON ecosystem.” 
## Unique Features of USDT on TON
The Tether USDT has essential features that makes it a stablecoin of choice among crypto users.

**Hedging**: It maintains its value against the United States dollar, one of the leading fiat currencies on the market. 
**Promotes peer-to-peer transactions**: Due to its price stability many people are willing to use it when conducting daily transactions.
**Cross-border payments**: People can use it to make payments to anyone or any institution around the globe.
## Future of USDT on Ton
Many people will likely transact with USDT on Ton due to the blockchain’s efficiency, high scalability and security. Also, the USDT economic utility will increase due to Telegram’s viral mechanics as well as the large number of users. Since Ton is one of the most cost effective blockchains many people will likely adopt USDT as a means of payment. 
## Conclusion 
Tether has announced its plans to integrate USDT and XAUT with Ton network to increase the accessibility and utility of its two stablecoins. Also, the stablecoins will benefit from Ton network scalability and cost-effectiveness. In all, many people are likely to adopt USDT and XAUT as they become more accessible than before.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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