Sign Up on MEXCJustin Sun’s Tron Nabs Big Names For Its $10 Bln Stablecoin Reserve
The Tron blockchain’s plans for a decentralized reserve appear to be gathering interest from several major players in the crypto industry.
Tron’s algorithmic stablecoin, USDD, began trading earlier this week. The blockchain’s planned decentralized reserve, which will be valued at $10 billion, is set to help maintain USDD’s 1:1 peg against the U.S. dollar.
Tron founder Justin Sun had last month outlined an ambitious, albeit vague plan to launch and maintain the stablecoin. Sun also said the stablecoin will offer a staggering 30% annual yield, much higher than any conventional token in the DeFi space.
A key aspect of Sun’s announcement was that Tron would collaborate with several major blockchain players in building the reserve. So far, the project has found three.
Alameda Research, Amber Group among backers for Tron reserve
Crypto trader Alameda, which was founded by FTX CEO Sam Bankman-Fried, became the first whitelisted institution of the Tron reserve. The move was announced by the Tron project on its official Twitter handle.
Singapore-based crypto unicorn Amber Group is the second whitelisted institution for the reserve, Tron said. Amber, which ranks sovereign fund Temasek among its investors, is reportedly looking to more than triple its value to $10 billion. The move would make it one of the most valuable crypto startups.
The third major backer for the USDD reserve is crypto exchange Poloniex. Tron is a major investor in the crypto exchange, which was bought and spun off by stablecoin operator Circle in 2019.
It was not immediately clear what sort of financial role the whitelisted firms would play in the upcoming reserve.
USDD criticized for copying Terra
But while Sun has outlined ambitious plans for USDD, the stablecoin was criticized for being extremely similar to Terra’s UST. Critics noted that the tokenomics behind the coin, ie burning and redeeming operated exactly like UST.
The fact that USDD will be backed by a large reserve, similar to UST, is also a point of contention.
But the similarities could also stem from the fact that most algorithmic stablecoins operate in an identical manner. Terra founder Do Kwon also welcomed the USDD launch.
The algorithmic stablecoin space is heating up this year. NEAR protocol recently launched its own offering, while IOST has similar plans.
- Grayscale’s XRP, SOL, ADA Fund To Begin Trading Tomorrow Following SEC’s Greenlight
- Donald Trump Petitions Supreme Court To Remove Fed Governor Lisa Cook
- Pi Coin Rises As Pi Network Implements Protocol v23 on Testnet
- Tether-Backed Plasma Stablecoin Blockchain Set to Launch on September 25
- Cathie Wood’s Ark Invest Backs Nasdaq-Listed Solmate To Launch $300M Solana Treasury
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
- HBAR Price Prediction as SEC Approves Generic ETF Framework – Analyst Targets $1.80
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
- Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter
- Pepe Coin Price Prediction as Whale Moves $25M From Robinhood- Is a Breakout to $0.00002 Next?
- XRP Price Prediction as Market Longs Hit 78% amid VivoPower Treasury Expansion Launch — Is $4 Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
