Telegram users can now send stablecoin USDT payments to each other through the encrypted messaging service’s linked blockchain. Telegram, with approximately 900 million users globally, announced on Friday that users can now send USDT, a stablecoin developed by Tether, over The Open Network (TON), a blockchain network integrated with the Telegram app.
To utilize this feature, users must first go to the Wallet bot on Telegram and set up a crypto wallet. From there, users can purchase USDT and send money to others by choosing Tether’s token as a payment option. This move may help make Tether’s USDT coin more widely used.
Stablecoins, which are cryptocurrencies with prices pegged to an underlying asset like the U.S. dollar, are gaining popularity as an alternative to fiat coins for buying and selling digital currencies. These tokens maintain their peg by holding an equivalent amount of assets to their total token issuance.
Despite their popularity, stablecoins like Tether have faced skepticism from regulators, investors, and analysts regarding the source of their reserves. There have been concerns about Tether’s ability to survive a “bank run” as its token has occasionally dropped below $1. However, Tether asserts that its token is fully backed by quality reserves and has always been able to fulfill withdrawals, even during challenging times.
Telegram, a messaging service with roughly 900 million users worldwide, now allows users to send the stablecoin USDT (developed by Tether) to each other through its linked blockchain called The Open Network (TON). Users must first set up a crypto wallet on the app and then can purchase USDT to send to other users. This move could make Tether’s USDT more mainstream, as stablecoins are becoming popular alternatives to traditional fiat currencies for users buying and selling digital assets. However, stablecoins like Tether’s USDT have faced scrutiny over the source of their reserves and whether they are adequately capitalized to withstand a potential “bank run.” Tether maintains that its token is fully backed by quality reserves and has always been able to meet withdrawals, even during times of distress.
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