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Examining Tron, the primary settlement layer for stablecoins
by Josh Olszewicz, portfolio manager and head of trading at Canary Capital
The Tron TRX network has quietly established itself as one of the most heavily utilized ledgers in the virtual currency ecosystem by maintaining an absolute focus on transaction speed, affordability, and clearance efficiency. Operating as a layer-1 blockchain where transactions get recorded, validated, and finalized, Tron has turned into the premier settlement conduit for stablecoins—specifically Tether’s USDT—handling billions of dollars in economic transfers daily.
Debuted in 2018, Tron started out as an ERC-20 token on Ethereum before shifting to its own standalone blockchain. Its initial mission aimed at decentralizing media distribution; however, the network’s main application shifted dramatically over time. Today, Tron functions most accurately as international payment infrastructure, proving especially appealing in developing economies where cheap fees and rapid settlement outweigh sophisticated programmability.
Tron relies on a delegated proof-of-stake (DPoS) consensus architecture. Within this framework, TRX owners lock up their coins to acquire voting rights, which they then use to choose 27 Super Representatives—the validators tasked with creating blocks and keeping the network running. Because block creation stays centralized among a select elected group rather than spreading across an expansive pool of users, Tron achieves rapid finality times and minimal computational demands.
Stablecoins and the payment utility
The single most pivotal milestone in Tron’s progression has been its rise as the top clearing network for stablecoins. A massive portion of global USDT supply now lives on Tron, a trait that distinguishes it from many alternative layer-1s: instead of competing primarily through decentralized finance innovation or consumer applications, Tron has branded itself as the digital payment rails for the U.S. dollar.
That positioning reflects clearly in network utilization metrics. Based on data from Tron’s block explorer, weekly transactions on the network have climbed to unprecedented peaks, recently nearing 100 million transactions per week, while average on-chain transaction costs have dropped to roughly seven cents, marking a multi-year low.
Weekly active wallets, tracking unique addresses transacting across a seven-day window, have likewise surged toward record levels, pointing to widespread, continuous adoption instead of niche activity. Stablecoin movement volume on Tron has expanded concurrently, recently sustaining between $150 billion and $190 billion weekly.
TRX utility and tokenomics
TRX serves as the native asset of the network, and its practical utility links directly to operational mechanics. Every single transaction utilizes two network resources: bandwidth for standard transfers, and energy for running smart contracts. Users can spend TRX per transaction—which permanently removes the tokens from circulation—or stake their TRX, locking it up to receive a daily allotment of both resources instead.
Unlike Bitcoin’s capped supply framework, TRX lacks a hard ceiling; instead, its token supply is managed via staking and burning mechanisms that balance out new issuance. Consequently, rising transaction volumes and stablecoin movements can theoretically bolster demand for staking, token burning, and governance involvement, although overall token performance remains tied to wider digital asset market cycles.
The regulatory landscape
The regulatory climate for digital assets in the United States has transformed significantly since the beginning of 2025. Following a January 2025 executive order prioritizing support for digital asset advancement, the SEC formed a dedicated Crypto Task Force, and by March 2026, the SEC and CFTC jointly published an interpretive guide defining classes of digital assets, including “digital commodities,” whose worth stems from running a functional network rather than managerial efforts by third parties.
Legislation also impacts Tron’s specific business model. Passed in July 2025, the GENIUS Act instituted a federal framework for payment stablecoins, outlining authorized issuers, reserve requirements, and oversight—matters of direct importance for a network where stablecoin transfers comprise the bulk of activity. Clearer stablecoin regulations might bolster further growth in settlement volume on Tron, though that same legislation could restrict which issuers or tokens are allowed on the network, creating potential headwinds. Simultaneously, the proposed Clarity Act would introduce broader market-structure regulations dividing regulatory jurisdiction between the SEC and CFTC; if passed, it could mitigate regulatory ambiguity surrounding TRX, although its ultimate outcome and final text remain uncertain as it moves through Congress.
Tron: A stablecoin infrastructure thesis
For investors assessing digital asset exposure, Tron presents a unique investment thesis compared to peer layer-1 protocols. Rather than speculating purely on decentralized app innovation, the investment case connects more closely to blockchain-driven payment architecture and the deepening institutional adoption of stablecoins as a settlement medium. The longevity of this outlook hinges on multiple variables, such as how stablecoin regulations develop, the trajectory of transaction volume and fee generation, and Tron’s capacity to deliver new features and protocol updates. Investors must also evaluate how Tron’s valuation multiples shift in relation to the network’s underlying growth and economic activity.
Weekly Headlines
By Helene Braun
Several major market, regulatory, and adoption themes in crypto intersected this past week as bitcoin BTC approached $90,000 alongside rising leverage, Google and Apple hunted for blockchain talent, the defeat of the Clarity Act prompted debates about where crypto enterprises will establish operations, and the SEC’s push into tokenized stocks opened fresh avenues for Coinbase, Robinhood, and Circle.
- BTC targets $90,000 as leverage accumulates: Bitcoin surged to $86,000 on Monday, but market experts caution that the next upward leg relies on whether spot buyers maintain participation while leverage increases.
- Google and Apple hunt for crypto professionals as Big Tech targets stablecoin and tokenization rails: Job postings from these technology giants suggest they may be separately recruiting specialists in stablecoins and tokenized deposits for upcoming initiatives.
- Clarity Act rejection safeguards traditional bank deposits while pushing crypto firms offshore: One commentator argues that the bill’s failure represents a victory for banks that fiercely oppose stablecoin yields, while an international crypto attorney suggests foreign jurisdictions stand to gain.
- Coinbase, Robinhood, and Circle positioned to benefit from SEC’s tokenized-stock initiative, analysts note: Researchers from Goldman Sachs and Citizens stated that the regulator’s actions generate new prospects across custody, tokenization infrastructure, and stablecoin clearing, while granting brokers more leeway to scale on-chain offerings.
Chart of the Week
Robinhood-chain decentralized exchange volume spike relative to Solana eases, even as SOL continues its ascent
The daily decentralized exchange volume ratio between Robinhood-chain and Solana jumped from 18% to a peak of 97% on September 4, before shrinking to 34% by September 20, accompanied by a 79% surge on September 21. SOL prices rose consistently throughout the period, gaining 65% in total and 17% following the ratio’s peak, indicating that the relative volume contraction was not driven by price action in SOL.
Seeking more? Access the latest cryptocurrency news at coindesk.com and market insights via coindesk.com/institutions.
Originally published at https://www.coindesk.com/coindesk-indices/2026/09/23/crypto-long-and-short-inside-the-chain-settling-usd150-billion-of-stablecoins-a-week.
