TRON founder Justin Sun announced on Thursday a new decentralized dollar-pegged algorithmic stablecoin on the Tron blockchain called USDD.
See related article: What are stablecoins, and why are some governments so afraid of them?
- The TRON Decentralized Autonomous Organization (DAO) intends to raise US$10 billion within the next year to fund a crypto reserve to secure USDD stability in financial crises.
- As a decentralized algorithmic stablecoin, USDD’s peg will be influenced by the TRX supply, the native currency of the Tron network.
- The TRX price surged over 15% directly following the news, reaching its highest point in almost three weeks to trade at US$0.07183 at press time.
- Around 41.8 billion USDT — the world’s largest stablecoin — currently circulates in the Tron blockchain, roughly 2 billion more than Ethereum.
- TRON’s move to collateralize an algorithmic stablecoin with crypto reflects Terra and Do Kwon’s ongoing progress to back the UST stablecoin with US$10 billion in Bitcoin.