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Crypto magnate Justin Sun has revealed intentions to introduce a gas-free stablecoin by the year’s conclusion.
The founder of Tron seeks to create a mechanism that allows peer-to-peer transactions without the necessity for gas tokens, rendering transactions entirely free for users.
Although the specific workings of the stablecoin solution have not been revealed, Sun plans to implement it on the Tron blockchain in the fourth quarter, as mentioned in a recent update on X.
“Our team is working on a new solution that facilitates gas-free stablecoin transfers,” he stated.
“In essence, transfers can occur without the need to pay any gas tokens, with the fees fully covered by the stablecoins themselves.”
Sun’s Stablecoin to Extend Support to Additional Blockchains
After the Tron rollout, he intends to broaden its reach to Ethereum and other public chains compatible with Ethereum Virtual Machine.
Sun is convinced that gas-free stablecoins could transform how businesses provide stablecoin services.
By absorbing the transaction fees through the stablecoins themselves, he foresees a more accessible and widespread adoption of blockchain technology.
We expect to launch this service in Q4 of this year. I believe that similar services will significantly aid large enterprises in implementing stablecoin services on the blockchain, advancing blockchain mass adoption to a new level.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) July 6, 2024
Tron currently leads the peer-to-peer stablecoin transfer sector, handling two to three times the volume of its nearest rival, Ethereum.
The launch of Tron’s gas-free stablecoin solution could challenge existing products like PayPal’s PYUSD, which allows certain US users to execute cross-border payments without incurring fees.
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Moreover, Circle’s USD Coin on Ethereum’s layer 2 Base via Coinbase Wallet already permits free transfers.
Circle and cryptocurrency exchange Binance have recently ceased their support for USDC on Tron, potentially prompting Tron to create its own solution.
Tron is also investigating the creation of a Bitcoin layer-2 solution that would support a wrapped version of Tether, which could lead to a substantial influx of capital into the Bitcoin ecosystem.
Meanwhile, Tron is leveraging cross-chain protocols to connect USDT and other tokens between Bitcoin and Tron networks.
Decline in Stablecoin Holdings Among Investors
As reported, stablecoin holdings among both institutional and retail investors fell from 50.2% in December to 42.8% in May.
Conversely, Bitcoin remains the largest single asset held, representing 26% of their total assets in the leading cryptocurrency as of May 2024.
Retail traders, akin to institutions, continue to favor BTC over ETH, despite the renewed enthusiasm for ETH Spot ETFs.
However, institutional holdings in BTC and ETH are more concentrated compared to those of retail traders, with allocations of 39.4% and 20.9% respectively as of May.
Following the SEC’s approval of Bitcoin Spot ETFs in January 2024, institutional Bitcoin holdings have steadily risen, while their Ether positions have experienced an unexpected decline.
This indicates that institutions perceive Bitcoin as the more appealing choice, possibly due to apprehensions regarding Ether Spot ETFs not encompassing staking rewards.
In contrast, retail traders have shown their capability to time the market during the March-April 2024 correction.
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