USDT to Launch Aptos – Could it Rival Tron for Stablecoin Crown?

Key Takeaways

• Tether has announced plans to launch USDT on Aptos.
• Ethereum and Tron currently account for the bulk of USDT transactions.
• However, Aptos’ low fees and fast time to finality could give it an edge.

In the past 3 months, there were $6.43 billion  worth of stablecoin transactions on Tron, which is second only to Ethereum and handles nearly twice the volume of third-place stablecoin chain Solana. 

The platform’s stablecoin strength can be attributed to one simple factor: it is the most popular way to move USDT from A to B. But with Tether set to launch its flagship digital dollar on Aptos, Tron could soon have competition.

USDT Arrives on Aptos

Founded in 2021, Aptos is part of a recent generation of Layer 1 blockchains that leverage the Move programming language to deliver high throughput and rapid time to finality (TTF).

While the platform offers one of the highest theoretical tps (transactions per second) rates of any blockchain, as a latecomer to the Web3 party it doesn’t even rank among the top 10 in terms of actual usage. 

In the years since its mainnet launch, the absence of any of the large stablecoins has inhibited the network’s growth. But that could be about to change.

In a statement  on Monday, Aug. 19, Tether said the Aptos integration will “bring the advantage of extremely low gas fees, costing only a fraction of a penny.” Meanwhile, CEO Paulo Ardiono lauded the blockchain as “faster and more cost-effective” than alternatives.

Tron’s Stablecoin Advantage Threatened

If Aptos is able to poach USDT transaction volume from Tron, it would serve as a blow to the latter’s status as one of the leading stablecoin chains.

The platform already lost a small but not insignificant chunk of stablecoin activity earlier this year when Circle retired USDC on Tron over regulatory concerns

Meanwhile, Tron’s reputation for cost-efficiency is threatened by lower Ethereum fees post-Dencun. 

Back when stablecoin transactions could incur gas of three dollars or more on Ethereum, Tron’s offer was attractive. But according to gasfeesnow.com, USDT transactions on Ethereum currently average $0.388 while the rising price of TRX has bumped the cost on Tron to between $1.67 and $3.39.

In terms of transaction speed, Tron achieves finality in under three seconds, which is much faster than Ethereum and other legacy blockchains. However, it looks slow when compared to Aptos’ sub-second TTF. 

The Maturing Aptos Ecosystem

Up until now, the majority of stablecoins on Aptos have been bridged from other chains using solutions like LayerZero.

However, with native USDT issued by Tether, it will be much easier and safer to access the stablecoin liquidity on Aptos, creating a potential boon for the platform’s DeFi ecosystem. 

The biggest test of the new integration will be whether it is embraced by large centralized exchanges, which act as important gatekeepers to the world’s stablecoin flows. If the likes of Binance offer Aptos as an option for USDT transfer and it is cheaper than alternatives, it could drive a significant amount of the stablecoin’s total transaction volume to the new chain.

About the Author

James Morales

Although his background is in crypto and FinTech news, these days, James likes to roam across CCN’s editorial breadth, focusing mostly on digital technology. Having always been fascinated by the latest innovations, he uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.

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