Stablecoin issuer Tether has partnered with the TON Foundation to allow customers to send cryptocurrency payments using the encrypted messaging service Telegram.
The partnership aims to create an app that acts as both a communications system and a bank account, offering users a convenient and secure way to transfer cryptocurrencies, Tether CEO Paolo Ardoino said on Friday. He told Bloomberg in a report published on April 19th.
TON Foundation Chairman Steve Yun said in a report that the TON Foundation is working with Telegram to bring more of Telegram's 900 million users to the TON blockchain and cryptocurrency wallet.
According to the report, this movement is driven by demand for easy and efficient ways to send money, especially in emerging markets where there is a strong desire to store wealth in US dollars. Tether’s USDT cryptocurrency is backed by reserves invested primarily in dollar-denominated assets.
Tether is the most widely used stablecoin, but it faces increased scrutiny over its potential use for sanctions evasion and illegal activities, the report said. The US and UK are currently reviewing billions of dollars worth of cryptocurrency transactions involving Tether.
However, the report said Tether values cooperation with law enforcement agencies around the world and follows sanctions regulations to ensure compliance. The company can freeze assets if necessary, and has frozen $1.1 billion in funds since its founding in 2014.
According to the report, critics have questioned the reserves that back Tether's USDT. Tether currently has more than $90 billion in U.S. Treasuries backing its stablecoin and issues quarterly certificates on the assets backing its reserves. The company put $5 billion into reserves last year, prioritizing redemptions, and made a profit of $6 billion.
In another recent development, Telegram announced on March 31 that it is pivoting to cryptocurrency payments to advertisers and content creators on the app.
The open network (better known as the TON blockchain) and its native currency, TONCoin, are currently the exclusive payment infrastructure for Telegram's social media advertising initiatives.
Telegram is the fourth most popular messaging app in terms of monthly active users, after WhatsApp, WeChat, and Facebook Messenger.
