Stablecoins

Stablecoins are tokens whose value is fixed to a stable asset such as a fiat currency, precious metal, or a basket of cryptocurrencies. They enable price‑stable transactions and are a core component of DeFi on the TON blockchain.

Overview#

Stablecoins provide a low‑volatility medium for storing and exchanging cryptoassets. Users can move value without relying on traditional banks, and the tokens are widely used for trading, liquidity provision, borrowing, and lending in decentralized finance applications.

Types of stablecoins#

Fiat‑backed

These tokens are backed 1:1 by reserves of a fiat currency (e.g., USD, EUR, CNY) held in bank accounts. Issuers must maintain sufficient reserves to match the circulating supply.

• USDT (Tether) – the largest stablecoin by market cap, issued on many blockchains, including TON.
• USDC (USD Coin) – regulated, publishes regular reserve attestations. In March 2023 the peg briefly slipped after the Silicon Valley Bank collapse; the issuer restored the peg within days.
• FDUSD – a newer fiat‑backed token with limited history.

Commodity‑backed

Value is tied to physical commodities such as gold, silver, or oil. Liquidity is generally lower than fiat‑backed tokens.

• DGX (Digix Gold Token) – pegged to gold.
• SwissRealCoin – backed by a portfolio of Swiss real‑estate assets.

Crypto‑backed

Reserves consist of other cryptocurrencies held in smart contracts, often over‑collateralized.

• DAI – collateralized by a basket of cryptoassets.
• USDD – a TRON‑based stablecoin backed by a mix of crypto assets.

Algorithmic (unbacked)

Stability is maintained by on‑chain algorithms that mint or burn tokens in response to price movements. These designs are prone to “death spirals” when market pressure overwhelms the mechanism.

• Reserve (RSRV) and USDJ are examples.
• TerraUSD (UST) collapsed in May 2022 after a rapid de‑peg, illustrating the risk of algorithmic models.

Stablecoins on TON#

On TON, stablecoins are implemented as Jettons, the native token standard.

• 2024 integration – USDT was launched on TON in a joint session with Pavel Durov (Telegram), Andrey Rogozov (The Open Platform), and Paolo Ardoino (Tether). The first 10 million USDT were issued, with a roadmap to reach 1 billion USDT.
• Fee payments – Users can pay transaction fees on TON directly with USDT.
• Free withdrawals – USDT withdrawals to external TON wallets were fee‑free until the end of June 2024.
• Incentives – The TON Foundation allocated 11 million TON for integration rewards and $30 million for USDT‑TON liquidity farming on STON.fi and DeDust.
• Wallet bonuses – Telegram Wallet announced a 50 % annual interest program for USDT holders, funded with $30 million.
• OKX promotion – OKX and the TON Foundation ran a “Learn and Earn” campaign with a 20 000 TON prize pool.

Technically, USDT on TON is a Jetton contract; transfer fees are paid in TON, and cross‑chain bridges to Ethereum or Tron remain centralized.

Use cases#

• Telegram payments – Direct USDT transfers in the Telegram Wallet, peer‑to‑peer tips, and in‑app purchases.
• DeFi – Trading and farming on STON.fi, DeDust, and other stable‑swap pools (e.g., Torch Finance, Crouton Finance).
• Wallet support – Native USDT‑Jetton support in Tonkeeper, MyTonWallet, and the standard TON Wallet.
• Exchanges – Deposits and withdrawals of USDT via TON are available on major exchanges such as OKX and Bybit.

Risks#

• Counterparty risk – Centralized stablecoins depend on the issuer’s reserves; bank failures can break the peg.
• Regulatory risk – Stablecoins are increasingly subject to financial regulations that may restrict usage.
• Algorithmic risk – Unbacked tokens can experience rapid de‑pegs, as seen with UST.
• Technical risk – Bugs in Jetton contracts could freeze funds; formal verification is still rare.

Comparison of major stablecoins#

Market capitalizations change frequently; consult CoinMarketCap or DeFiLlama for the latest figures.

See also#

• TON Jettons
• The Open Network
• STON.fi
• DeDust
• Tonkeeper
• TON Foundation