The over-collateralized and extensively distributed Tron stablecoin has boosted the token’s market dominance due to the widespread use of Tron’s unique blockchain for smart contracts. Tron currently stands third in the industry, aftermarket leaders Ethereum and BSC, with a total TVL value of $5,2 billion.

With Decrypt, Justin Sun, based in Singapore then, addressed the problem of transparency in the stablecoin industry’s administration of investor funds. While serving as a consultant for the renowned Huobi cryptocurrency exchange, the USDT ideals of Tron were discussed. There is a strong use case for legal tender in the Caribbean among these concepts.

Contrasted with stablecoins like USDT, which are based on fiat currency and hence allow for easy exchange into money, USDD is a decentralized stablecoin. Justin Sun argues that USDD depends primarily on bitcoin and other centralized stablecoins. And Sun suggests USDD is still in the early stages of development. As Huobi’s global advisory board member, he has a say in the exchange’s evolution and expansion, increasing the likelihood that USDD will be listed as a trading pair. This would increase the token’s liquidity and stimulate demand.

Sun adds that the USDD stablecoin is the conclusion of Terra’s learning, such as the necessity to secure stablecoins from centralized control, reassure users via over-collateralization, and emphasize the use case. According to Justin Sun, many stablecoins fail because they need a compelling use case. The typical use case for stablecoins is “to contribute to a pool utilizing 20% API.” “I think we may leverage some of the incentives to help propagate the stablecoin,” he says.

The World Trade Organization has named Justin Sun, a new citizen of Grenada, as its permanent representative. This paves the way for further adoption of USDD as legal money to be discussed with other regional administrations. Despite his departure as CEO, it is clear that he remains optimistic about USDD and its potential to help position Tron as a pioneer of the next decentralized internet. Sun said, “I believe we can evolve the stablecoin to the next level” with enough over-collateralization, decentralization, and a globally relevant use case.