Stablecoin issuer Tether has collaborated with the TON Foundation to facilitate customers in sending cryptocurrency payments through the encrypted messaging service Telegram.

The partnership’s objective is to develop an application that functions both as a communication platform and a financial account, offering users a secure and convenient way to conduct crypto transactions, as stated by Tether CEO Paolo Ardoino in a report published by Bloomberg on Friday (April 19).

The TON Foundation, in partnership with Telegram, aims to attract more of Telegram’s 900 million users to the TON blockchain and cryptocurrency wallet, noted Steve Yun, the president of the TON Foundation.

This initiative is driven by the increasing demand for simple and effective methods of transferring funds, especially in emerging markets where there is a strong inclination to preserve wealth in U.S. dollars. Tether’s USDT cryptocurrency is collateralized by reserves predominantly invested in assets denominated in dollars.

Despite being the most extensively utilized stablecoin, Tether has encountered scrutiny regarding its potential involvement in sanctions circumvention and unlawful activities, as reported. Both the United States and the United Kingdom are currently scrutinizing cryptocurrency transactions worth billions of dollars associated with Tether.

Nevertheless, Tether underscores its cooperation with law enforcement agencies globally and adherence to sanctions regulations to ensure conformity, according to the report. The company possesses the capability to freeze assets when necessary, having frozen $1.1 billion in funds since its establishment in 2014.

Critics have expressed doubts about the reserves supporting Tether’s USDT, the report mentioned. Tether now provides quarterly confirmations regarding the assets supporting its reserves, with more than \(90 billion in U.S. Treasuries underpinning its stablecoin. The company recorded a profit of \)6 billion last year, prioritizing the redeemability of its stablecoin by allocating $5 billion to its reserves.

In a recent development, Telegram announced on March 31 its shift towards crypto payments for advertisers and crypto disbursements for content creators on the platform.

The Open Network, also known as the TON Blockchain, along with its native currency Toncoin, now serves as the exclusive payment infrastructure for Telegram’s social media advertising campaigns.

Telegram ranks as the fourth most popular messaging application based on monthly active users, following WhatsApp, WeChat, and Facebook Messenger.

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