Tron Network Launches Chinese Currency-pegged Stablecoin TCNH

• Tron network is set to introduce a Chinese currency-pegged stablecoin TCNH.
• The issuer of TUSD stablecoin will also take charge of the TCNH.
• The TRX network stablecoin USDD is yet to recover its $1 peg.

The Tron network (TRX) is launching the equivalent of a central bank digital currency (CBDC) on the blockchain with the Chinese currency, TrueCNH (TCNH).

Justin Sun, the Huobi Global crypto exchange advisor, recently commented on the TRON-based stablecoin, TCNH, pegged to offshore Chinese Yuan (CNH) at a one-to-one ratio. Sun, the founder of the Tron blockchain, said:

It is anchored one-to-one with the offshore RMB, and there are no restrictions on purchase and exchange. In the future, the Chinese government will be open and optimistic about cryptocurrencies.

According to reports, TCNH will be issued by the TrueUSD team, which currently administers TUSD stablecoin with over a $753,611,088 market cap. Notably, the TRX network has a native algorithmic stablecoin called USDD, trading at $0.9826. The algorithmic stablecoin lost its $1 peg early last month in the height of crypto FUD, given the bankruptcy of the FTX exchange.

Similarly, the Cardano blockchain recently teamed up with COTI, a layer-one protocol, to establish an over-collateralized algorithmic stablecoin, DJED. The stablecoin will go live on the Cardano mainnet starting next year after a successful audit and rigorous stress testing.

Shahaf Bar-Geffen, the CEO of COTI, argued that the recent market events demonstrated the necessity for a haven from volatility and that the DJED stablecoin will serve that purpose.

The Djed team pledged to back the DJED stablecoin in a one-to-one ratio against the United States Dollar using surplus collateral in cryptocurrencies like the ADA token. Selected partners and Decentralized Exchanges (DEXs) will incorporate the algorithmic stablecoin and compensate users for providing liquidity using DJED.