Crypto Long & Short: Inside the chain settling $150 billion of stablecoins a week

Tron launched as a content-distribution project and has become the settlement layer for a large share of the world's USDT, processing roughly $150 billion to $190 billion of stablecoin transfers a week. Josh Olszewicz of Canary Capital breaks down how the network's economics work and what stablecoin regulation could do to the thesis. You're reading Crypto Long & Short, our weekly newsletter featuring insights, news and analysis for the professional investor. Sign up here to get it in your inbox every Wednesday.Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc., CoinDesk Indices or its owners and affiliates.Breaking down Tron, the settlement rail for stablecoinsby Josh Olszewicz, portfolio manager and head of trading, Canary CapitalThe Tron network has quietly become one of the most heavily used blockchains in the digital asset market through a singular focus on speed, cost and settlement efficiency. A layer-1 blockchain (where transactions are recorded, validated and finalized), Tron has become the dominant settlement rail for stablecoins, particularly Tether's USDT, processing billions of dollars in value transfer every day.Launched in 2018, Tron began as an ERC-20 token on Ethereum before migrating to its own independent blockchain. Its founding vision centered on decentralizing content distribution; over time, however, the network's primary use case shifted substantially. Today, Tron is best understood as global payment infrastructure, one that has become particularly attractive in emerging markets where low transaction costs and fast settlement matter more than cutting-edge programmability.Tron uses a delegated proof-of-stake (DPoS) consensus mechanism. Under this system, TRX holders stake their tokens to gain voting power and use that power to elect 27 Super Representatives, the validators responsible for producing blocks and maintaining the network. Because block production is concentrated among a limited, elected set of validators rather than distributed across a broad network of participants, Tron can achieve fast confirmation times and low computational overhead.Stablecoins and the payments use caseThe single most important development in Tron's evolution has been its emergence as the leading settlement network for stablecoins. A substantial share of global USDT circulation now resides on Tron, and this characteristic separates Tron from many of its layer-1 peers: rather than competing primarily on DeFi innovation or consumer applications, Tron has positioned itself as digital payment rails for dollars.That positioning shows up clearly in the network's usage data. According to Tron’s blockchain explorer, weekly transaction counts on Tron have climbed to record highs, recently approaching 100 million transactions per week, even as the average onchain transaction fee has fallen to around seven cents, a multiyear low.Weekly active addresses, a measure of unique wallets transacting on the network over a seven-day period, have also been climbing toward record levels, reflecting broad and sustained usage rather than a narrow base of activity. Stablecoin transfer volume on Tron has grown alongside this activity, recently running at roughly $150 billion to $190 billion per week.TRX utility and economicsTRX is the network's native token, and its utility is tied directly to how the network functions. Every transaction consumes two network resources: bandwidth, which covers basic transactions, and energy, which is required to execute smart contracts. Users can spend TRX per transaction, which burns the token, or they can stake TRX, locking it up in exchange for a daily allowance of both resources.Unlike bitcoin's fixed-supply model, TRX does not operate on a hard cap; instead, its supply dynamics are shaped by staking and token-burning, which offset new issuance. Because of this, rising transaction volume and stablecoin settlement can, in principle, support demand for staking, burning and governance participation, though token performance remains influenced by broader digital asset market conditions as well.The regulatory backdropThe U.S. regulatory environment for digital assets has shifted meaningfully since early 2025. Following an executive order in January 2025 emphasizing support for digital asset innovation, the SEC established a Crypto Task Force, and in March 2026 the SEC and CFTC jointly issued an interpretive release establishing categories of digital assets, including "digital commodities," whose value derives from the operation of a functional network rather than the managerial efforts of others.Legislation is also relevant to Tron's specific business model. The GENIUS Act, enacted in July 2025, established a federal framework for payment stablecoins, covering permitted issuers, reserve requirements and supervision, a matter of direct consequence for a network where stablecoin transfers make up a significant share of activity. Clearer stablecoin rules could support continued growth in settlement demand on Tron, but the same legislation could also restrict which issuers or stablecoins are permitted to operate on the network, which would be a headwind. Separately, the proposed Clarity Act would establish broader market-structure rules dividing SEC and CFTC oversight of digital assets; if enacted, it could reduce regulatory uncertainty around TRX, but its final form and impact remain unknown while it moves through the legislative process.Tron: a stablecoin infrastructure thesisFor investors evaluating digital asset exposure, Tron represents a distinct thesis from many of its layer-1 peers. Rather than primarily betting on decentralized application innovation, the investment case is more closely tied to blockchain-based payment infrastructure and the continued institutionalization of stablecoins as a settlement medium. The durability of this thesis will depend on several factors, including the evolution of stablecoin regulation, the trajectory of transaction activity and fee generation, and Tron's ability to ship new features and protocol improvements. Investors must also consider how Tron's valuation multiple evolves relative to the underlying growth and activity of the network.Headlines of the weekBy Helene BraunSeveral of crypto’s biggest market, policy and adoption stories converged this past week as bitcoin pushed toward $90,000 with leverage building, Google and Apple sought digital asset talent, the Clarity Act’s defeat raised questions about where crypto businesses will build and the SEC’s tokenized-stock push opened potential opportunities for Coinbase, Robinhood and Circle.BTC eyes $90,000 as leverage is building: Bitcoin on Monday broke out to $86,000, but analysts say the next leg depends on whether spot buyers continue to show up as leverage builds.Google and Apple seek digital asset talent as Big Tech eyes stablecoin infrastructure: The tech giants’ job listings could indicate that they are separately pursuing experts in stablecoins and tokenized deposits for future projects.Clarity Act rejection protects bank deposits while driving crypto business overseas: One expert believes that the failure to pass the bill is a win for the banks that staunchly oppose stablecoin yields, while a global crypto lawyer believes overseas jurisdictions benefit.Coinbase, Robinhood, Circle stand to gain from SEC's tokenized-stock push: Goldman Sachs and Citizens analysts said the agency's move creates new opportunities in custody, tokenization infrastructure and stablecoin settlement, while giving brokers room to expand onchain products.Chart of the WeekRobinhood-chain's DEX volume surge against Solana cools off, even as SOL keeps climbingThe Robinhood-chain/Solana daily DEX volume ratio surged from 18% to a peak of 97% on Sept. 4, then contracted to 34% by Sept. 20, with a 79% spike on Sept. 21. SOL price climbed steadily throughout, up 65% overall and 17% since the ratio's peak, showing the pullback in relative volume wasn't a SOL price effect.Looking for more? Receive the latest crypto news from coindesk.com and market updates from coindesk.com/institutions.12345678910