- Tron founder, Justin Sun, posted on X yesterday that he plans to launch a ‘gas-less’ stablecoin in Q4 of this year.
- This new stablecoin will likely compete with PYUSD from PayPal and USDC on Coinbase’s layer-2 network, Base.
- Sun’s move comes after Circle, the company behind USDC, cut ties with Tron earlier this year, discontinuing support for the minting of the USDC on Tron after a company-wide risk management review.
Just a few days after offering to ‘save crypto’ by buying the German government’s Bitcoin stash off-market, Tron founder Justin Sun is at it again. This time he says he’ll be launching a gas-less stablecoin on Tron, which he says will supercharge mainstream adoption of crypto.
Sun Announced on X yesterday that the Tron team is currently working on the new stablecoin:
The Tron founder claimed that “transfers can be made without paying any gas tokens, with the fees being entirely covered by the stablecoins themselves.” Which kind of sounds like there actually will be gas fees but they’ll be paid with the stablecoin itself—I guess we’ll need to wait and see.
Sun’s move to launch a gas-free stablecoin comes after Circle, the company behind the USDC stablecoin, abruptly ended Tron’s USDC minting services in February after a “enterprise wide risk management review” suggesting the review identified Tron as a potential risk to the company.
Related: Justin Sun Proposes Over-the-Counter Purchase of BTC Directly From German Government
Sun’s New Stablecoin To Complete With PayPal, Coinbase
In his X thread, Sun said the stablecoin will first come to Tron before launching on Ethereum and all other Ethereum Virtual Machine (EVM) compatible chains.
Sun says the stablecoin is set to launch in Q4 of 2024.
The Tron founder didn’t offer any technical details about how the new gas-less stablecoin will work, but it seems it’s intended to compete against PayPal’s recently launched PYUSD. PYUSD allows US-based users to swap the digital currency for USD, which they can then send cross-border without any fees.
Another likely competitor is Coinbase—the exchange currently allows users to send USDC for free on its Ethereum layer-2 network, Base, using its Coinbase Wallet app. However, it’s likely that Coinbase is subsidising these transfers rather than offering a true gas-less solution, as Sun claims to be planning.
Related: Circle Gains EU Stablecoin License, Is First to Be MiCA Compliant
The move to launch a gas-less, native stablecoin on Tron comes after Circle decided to cut ties with the network and end the minting of USDC on Tron. In a statement, Circle said the move was to ensure USDC remains safe to use and trustworthy—a pretty damning indictment of Tron as a network:
As part of our risk management framework, Circle continually assesses the suitability of all blockchains where USDC is supported. Our decision to discontinue support for USDC on TRON is the result of an enterprise-wide approach that involved the business organization, compliance and other functions across our company. This action aligns with our efforts to ensure that USDC remains trusted, transparent and safe – characteristics that make it the leading regulated digital dollar on the internet.
Circle statement on discontinuing support for USDC on Tron
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