Stablecoins exist on many different blockchains. One ecosystem currently getting a lot of attention is Syscoin. It is not entirely surprising, as that chain offers many functions and benefits.
TrustToken Taps Syscoin
The most recent development involves TrustToken and Syscoin. Anyone familiar with the TrustToken concept may know the TUSD asset. It will make its way to the Syscoin blockchain through a bridged solution. Currently, TUSD has a market cap of over $500 million. TUSD is well behind USDT or other similar currencies by market cap, but it is still a popular pegged asset.
The decision to bridge to Syscoin is a strategic one. The Syscoin mainnet is well-suited for digital money thanks to fast transaction times and low fees. Moreover, it provides scalability and trustless interoperability with the Ethereum ecosystem. Furthermore, the upcoming version of Syscoin allows Network-enforced Rulesets to adhere to regulatory pre-compliance, among other things.
TUSD For Now, More May Follow
TrustToken is responsible for creating multiple stablecoins. Its TUSD offering is the most prominent one. However, they also operate TGBP, THKD, TCAD, and TAUD. All of these assets are independently live-attested to ensure they meet collateral requirements. Combined, all of the TrustToken assets generate billions of dollars in monthly volume.
All of these assets may come to Syscoin’s ecosystem over time. For now, the main focus lies with TUSD. Depending on the success of that asset, others may follow suit in the coming months and years. Most of these assets find their use in OTC trading, rather than centralized exchanges. As such, their presence may not be as outspoken compared to other fiat-pegged currencies.
Ethereum Remains A Bottleneck
The concept of stablecoins and DeFi has taken off thanks to the Ethereum blockchain. It is a potent infrastructure, but one that also faces serious scalability issues. Syscoin is a better fit in this regard, as it maintains low fees, settles transactions quicker, and can scale well beyond what Ethereum is currently capable of. Once Ethereum 2.0 is in full effect, developers can even the playing field out again.
At the same time, Syscoin is not cutting off access to Ethereum either. It is possible to use any Ethereum-based asset on Syscoin and vice versa. This offers unprecedented usability, a key benefit for stablecoins like TUSD and other assets created by TrustToken. In terms of future-proofing the concept, an interoperable approach is a smart decision.
Transaction Fees Vary Greatly
Most cryptocurrency enthusiasts complain about the Ethereum transaction fees. Completing a transaction usually costs about $1 or more, which is rather steep. Syscoin, on the other hand, has an average daily cost of well below $50 for the entire network. These rates apply even when broadcasting over 8 million transactions per day. It is a big step up from both Bitcoin and Ethereum.
In terms of overall savings, Syscoin can help save several millions of dollars in transaction fees. Considering how Tether burns over $12 million a month in Ethereum gas fees, reducing these costs is crucial. For TrustToken and TUSD, tapping into a cheaper and scalable ecosystem can unlock new use cases further down the line.
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