Polygon adds TRON support to Open Money Stack for USDT payments and transfers
In brief
- Polygon Labs added TRON network support to its Open Money Stack payments service.
- Businesses can move USDT between TRON and supported EVM networks through one integration, Polygon says.
- Remittance firms, fintechs and payment companies are the service's target users.
- More than $94 billion of USDT circulates on TRON, CoinDesk data shows.
- Payment firms' licensing obligations still apply despite the integration, Polygon said.
What the integration does
The service is built for remittance firms, fintechs and payment companies. Polygon co-founder Sandeep Nailwal told CoinDesk it's aimed at businesses that want to use TRON for digital-dollar services without first stitching together banking access, wallets and other orchestration (the plumbing that usually sits behind a payments app).
So what does a payment actually look like? A customer could fund it by bank transfer, debit card or cash, receive USDT in a TRON wallet and later cash out to a bank account. Polygon says that gives firms a single connection for pieces of a payment flow that have often been handled by separate providers.
“By connecting TRON to Open Money Stack, we’re giving businesses a way to offer that service through one integration,” he added.
Polygon said its fiat-ramp service uses money-transmitter licenses and compliance systems covering 48 U.S. states.
There's a caveat, though.
The integration doesn't make TRON a bank, and it doesn't remove the licensing obligations payment firms already carry.
Why TRON matters for USDT
TRON is one of the main networks people use to move USDT. More than $94 billion of Tether's USDT was circulating on it, according to CoinDesk. About 93% of TRON's $30 trillion stablecoin transfer volume was peer-to-peer in the second quarter, the highest share of any network CoinDesk tracks, according to CoinDesk.
TRON, quoted by CoinDesk, said connecting its network to Polygon's infrastructure will help businesses serve users across different payment environments.
Where it fits in Polygon's plans
Polygon unveiled Open Money Stack in January after moving to acquire Coinme and Sequence. TRON support adds one of the main USDT networks to a stack Polygon pitches to firms that don't want to manage wallets, bridges and fiat ramps on their own.
Frequently asked questions
What does TRON support in Polygon's Open Money Stack let businesses do?
Polygon said businesses can move USDT between TRON and supported EVM networks without separately connecting to a wallet provider, bridge and fiat-ramp operator. A customer could fund a payment by bank transfer, debit card or cash, receive USDT in a TRON wallet and later cash out to a bank account.
Does the integration remove licensing requirements for payment firms?
No. The integration doesn't make TRON a bank and doesn't remove payment firms' licensing obligations. Polygon said its own fiat-ramp service uses money-transmitter licenses and compliance systems covering 48 U.S. states.
Why is TRON significant for USDT transfers?
TRON is one of the main networks used to move USDT, with more than $94 billion of Tether's USDT circulating on it, according to CoinDesk. About 93% of TRON's $30 trillion stablecoin transfer volume was peer-to-peer in the second quarter, the highest share of any network CoinDesk tracks, according to CoinDesk.
