Justin Sun teases gasless stablecoin coming to Tron by end of year with Ethereum, EVM chains to follow

Tron founder Justin Sun has announced plans to develop a stablecoin that users can transfer without paying gas fees. The stablecoin will launch on the Tron blockchain by Q4, with future expansions to Ethereum and other EVM-compatible chains, according to Sun.

In his announcement on X, Sun stated that the gas fees for the new stablecoin will be “entirely covered by the stablecoins themselves.” This innovative approach aims to eliminate the gas fees usually incurred during transfers.

Sun emphasized that the stablecoin will initially launch on the Tron blockchain and later expand to Ethereum and all blockchains compatible with the Ethereum Virtual Machine (EVM). He believes this service, set to launch in Q4 of this year, will significantly facilitate large companies in deploying stablecoin services on the blockchain, thus promoting broader adoption of blockchain technology.

Details on how the gasless transfers will be achieved were not provided. However, this stablecoin could compete with similar offerings, such as PayPal’s PYUSD, which allows U.S.-based users to swap the stablecoin for USD and send cross-border payments without fees. Unlike PYUSD, Sun’s token would not require an intermediate step of swapping out of the stablecoin.

Additionally, USDC transfers on the Ethereum Layer 2 blockchain Base made through Coinbase Wallet are currently free, leading to a significant increase in USDC volume on that network. Coinbase likely subsidizes these transfers, while Sun’s stablecoin aims to cover the fees natively through the stablecoins themselves.

USDC issuer Circle and Binance have both discontinued USDC support on Tron, providing Sun with further motivation to introduce a successful native stablecoin on the network he founded.