USDD Stablecoin. What Is TRON USD and How It Works

USDD is the main native dollar stablecoin of the TRON ecosystem, one of the largest networks for stablecoin transfers. It gives TRON users a dollar-pegged asset backed by on-chain reserves rather than bank deposits.

Since USDD 2.0, its reserves are over-collateralized and published on the TRON DAO Reserve dashboard, so anyone can check what backs it.

USDD's reserves are mostly volatile crypto assets, so a sharp market drop can shrink the collateral buffer and pressure the peg. USDD briefly lost its peg in 2022. Governance is concentrated in the TRON DAO Reserve, so holders rely on how it manages reserves. Regulation of crypto-backed stablecoins is still developing, which could affect where USDD can be offered.