Space Review: The New Order of Stablecoins – Can USD1 + TRON Become the Third Pole After USDT and USDC?

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In June 2025, a significant development reshaped the stablecoin landscape: USD1, a dollar-pegged stablecoin backed by political and financial capital, officially launched on the TRON network. This integration sparked widespread debate across the crypto community—could this alliance challenge the long-standing dominance of USDT and USDC? Could TRON, already home to billions in stablecoin value, evolve from a transactional backbone into a full-fledged global financial infrastructure?

At 8 p.m. on June 16, an expert roundtable titled "The New Order of Stablecoins: Can USD1 + TRON Become the Third Pole After USDT and USDC?" convened top industry voices on X Space. The discussion spanned technical scalability, compliance frameworks, capital flows, and geopolitical implications—offering deep insights into whether USD1 and TRON can truly redefine stablecoin dynamics.

The Rise of USD1: Challenging the USDT and USDC Duopoly

The global stablecoin market has long been dominated by two major players: Tether (USDT) and Circle’s USDC, which together control nearly 90% of the market. Yet, despite their dominance, both face growing structural challenges that are opening doors for new entrants like USD1.

Structural Weaknesses in USDT and USDC

Big Dipper, a noted market analyst, highlighted regulatory risks facing USDT:

“Under the EU’s MiCA regulations, stablecoin issuers must obtain licenses and maintain fully backed reserves. This could force platforms like Coinbase to delist USDT in Europe due to compliance gaps.”

While USDT continues to dominate in volume, concerns over reserve transparency persist. Despite claims of 1:1 backing, audits reveal complex asset compositions—including commercial paper and corporate debt—that fall short of full cash equivalence.

Meanwhile, USDC, praised for its regulatory adherence and 100% U.S. Treasury-backed reserves, faces its own limitations. Beidou, a DeFi strategist, noted:

“USDC’s strength is also its weakness—it’s too tied to the traditional financial system. A change in U.S. policy or banking crisis could freeze assets overnight.”

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This overreliance on centralized systems creates vulnerability—especially for users in regions with unstable banking access or under sanctions.

The Emerging Demand for a Third Pole

Peter Pan, a crypto economist, argued that stagnation among incumbents is inevitable:

“USDT and USDC struggle with innovation due to legacy structures. Their models aren’t built for decentralization, cross-border flexibility, or censorship resistance.”

As global demand shifts toward decentralized, multi-chain, and geopolitically neutral financial tools, the door opens for alternatives. The future may not be defined by one or two dominant stablecoins—but by a diverse ecosystem of specialized digital dollars serving different use cases.

USD1’s Core Advantages: Political Capital Meets Financial Flexibility

So what sets USD1 apart?

ZR Toad, a blockchain infrastructure expert, emphasized USD1’s multi-chain deployment and flexible issuance model, allowing rapid adaptation across jurisdictions and ecosystems.

But its most distinctive feature? Political endorsement.

Unlike USDT or USDC—both rooted in corporate or institutional frameworks—USD1 benefits from high-profile backing that enhances its visibility and perceived sovereignty. This doesn’t mean government issuance, but rather strategic alignment with actors outside traditional Wall Street channels.

Peter Pan offered a balanced view:

“USD1 introduces a ‘decentralized governance committee’ that reduces single-point control, offering better censorship resistance than USDC. However, its reserves still rely heavily on U.S. Treasury instruments—so it hasn’t escaped dollar hegemony.”

Still, for users prioritizing sovereign independence and cross-border utility, USD1 presents a compelling middle ground.

Crypto Industry Insider added:

“USDC wins with banks; USD1 wins with borderless commerce. It’s not about which is ‘better’—it’s about which fits the use case.”

Compared to USDC, USD1 shows greater adaptability in emerging markets, where regulatory ambiguity and capital controls make traditional stablecoins less effective.

Why TRON? Building the Infrastructure for the Third Pole

For USD1 to succeed, it needs more than just capital—it needs a robust, scalable blockchain. Enter TRON.

With over 2,500 TPS, near-zero transaction fees, and a thriving DeFi ecosystem, TRON offers the ideal environment for mass-scale stablecoin adoption.

BDStar, a network architect, outlined three key advantages:

1. Dominance in High-Frequency Payment Scenarios

TRON powers instant B2B settlements, cross-border remittances, and microtransactions—use cases where speed and cost matter most. Its ecosystem attracts millions of retail users and small merchants across Southeast Asia, Africa, and Latin America, creating organic demand for USD1.

2. Regulatory Adaptability via Bubblemaps V2

TRON employs an innovative compliance metadata layer that anonymizes addresses while preserving traceability for regulators. This “visual anonymity” satisfies both GDPR privacy standards and FATF anti-money laundering requirements—a rare balance praised by the European Blockchain Observatory.

3. Infrastructure as a Financial Highway

Bull Demon King described TRON as a “financial highway,” where the energy pledge mechanism eliminates gas fees and supports high-concurrency transactions. The result? Payment efficiency rivaling Visa—with blockchain-level transparency.

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This synergy between USD1’s capital strength and TRON’s technical prowess enables rapid penetration into underserved markets—where financial inclusion meets digital innovation.

TRON’s Expanding Stablecoin Ecosystem

TRON isn’t just hosting USD1—it’s building an entire stablecoin-first financial ecosystem.

From BitTorrent for cross-chain interoperability to SunSwap (a leading DEX) and JustLend (a major lending protocol), TRON supports a full suite of DeFi applications. Add in SunCurve for stablecoin swaps and APENFT for tokenized art, and you have one of the most mature on-chain economies in crypto.

Moreover, TRON has secured financial licenses in the UAE, EU, and Singapore, clearing regulatory hurdles for institutional adoption.

“TRON has evolved from a payment rail to a full-stack financial operating system,” said one panelist. “Stablecoins here aren’t just tools—they’re engines for yield, savings, and commerce.”

USD1 and USDD: A Dual-Track Stablecoin Strategy

TRON already hosts multiple stablecoins—**USDT ($55B), USDJ, and USDD**—with total circulation nearing $80 billion. The addition of USD1 doesn’t replace them; it complements them.

Peter Pan described TRON as a “stablecoin supermarket”:

BDStar elaborated:

“USD1 brings compliance; USDD brings decentralization. Together with TRX Vault as a liquidity engine, they form a closed-loop system: compliant entry → on-chain circulation → yield generation.”

This multi-layered approach allows seamless capital flow across risk profiles and user types—something no single stablecoin can achieve alone.

👉 Explore how multi-stablecoin ecosystems drive DeFi innovation

Bull Demon King concluded:

“TRON isn’t building one winner-take-all stablecoin. It’s fostering species diversity in digital finance—where each token plays a unique role in the ecosystem.”

Conclusion: Toward a Decentralized Financial Operating System

The “USD1 + TRON” experiment represents more than a technical upgrade—it’s a paradigm shift in how we think about money.

At the intersection of technology, governance, and geopolitics, this collaboration is testing whether blockchain can evolve beyond speculative trading into a true global financial operating system.

The roundtable consensus was clear:

If USD1 maintains transparency and balances political influence with decentralization—and if TRON continues expanding its DeFi territory and compliance footprint—the duo could indeed become the long-awaited third pole in the stablecoin world.

Not by defeating USDT or USDC, but by offering something they cannot: a diversified, resilient, and globally inclusive stablecoin ecosystem.

Frequently Asked Questions (FAQ)

Q: What is USD1?
A: USD1 is a U.S. dollar-pegged stablecoin backed by diversified reserves and governed by a decentralized committee. It launched in 2025 and is available across multiple blockchains, starting with TRON.

Q: How is USD1 different from USDC?
A: While both are dollar-backed, USD1 emphasizes geopolitical neutrality and cross-border usability, whereas USDC is tightly integrated with the U.S. financial system and subject to federal regulations.

Q: Why did USD1 choose TRON as its primary chain?
A: TRON offers high throughput (2,500+ TPS), negligible fees, strong DeFi integration, and advanced compliance tools like Bubblemaps V2—making it ideal for global stablecoin adoption.

Q: Is USD1 fully backed like USDT or USDC?
A: Yes, USD1 claims full reserve backing with regular attestations. Its reserve composition includes cash equivalents and short-term U.S. Treasuries, similar to other major stablecoins.

Q: Can TRON really compete with Ethereum or Solana in DeFi?
A: TRON already leads in stablecoin volume and transaction count. With ongoing upgrades and institutional licensing, it’s positioning itself as the go-to chain for scalable, compliant DeFi applications.

Q: Does USD1 pose a threat to existing stablecoins?
A: Rather than replacing them, USD1 expands options—especially for users in emerging markets or those seeking alternatives to centralized financial gatekeepers.

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