Telegram, the Dubai headquartered messaging app, will now allow its users to send stablecoin USDT payments to one another directly through the associated blockchain.
Telegram on Friday said that users on the platform can now choose to send USDT, a stablecoin created by Tether, via The Open Network (TON).
The announcement was made during the Token2049 event in Dubai, with keynotes from Tether CEO Paolo Ardoino and Telegram founder Pavel Durov.
Earlier, Telegram users could access USDT through Wallet, a third-party service. The new initiative introduces USDT on TON as an extra way to transact, alongside the existing USDT on the Tron network, which is presently the most widely used version.
TON is a blockchain network originally created by Telegram but has now been adopted by open-source developers and is integrated with the Telegram app.
To get started, users need to locate the Wallet bot on Telegram using the search bar within the app and set up their crypto wallet. Once done, they can buy USDT and send funds to other users by choosing Tether's token as the payment method.
Stablecoins are gaining traction as an alternative to traditional fiat currencies for users interested in trading digital assets. These cryptocurrencies have their values tied to an underlying asset, usually a fiat currency such as the US dollar.
To ensure stability, stablecoins hold assets equivalent to their total token issuance at all times. Despite their popularity, they remain a topic of controversy. Regulators, investors, and analysts have raised concerns, particularly regarding the reserves backing some stablecoins, notably Tether.
Critics have questioned whether Tether has enough funds to withstand a "bank run," as its token briefly fell below $1 multiple times. Tether asserts that its token is backed by high-quality reserves and has consistently honoured withdrawals, even during challenging periods.
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