The TRYB stablecoin, which is backed by the Turkish lira and issued by fintech company BiLira, has seen a 325% increase in its market cap in three weeks, making it the second-largest non-USD-pegged stablecoin in the world.
The TRYB stablecoin is an Ethereum-based token that allows users to issue and redeem 1 TRYB for 1 TRY. According to the official website, the stablecoin is 100% backed by fiat reserves held in Turkish banks.
The token aims to provide a stable and secure medium of exchange for crypto users in Turkey, where the lira has been experiencing high volatility and inflation.
TRYB vs USDT: A Comparison of Stablecoins
The stablecoin world is dominated by dollar-backed tokens like Tether (USDT) and USD Coin (USDC), which have market caps of almost $83 billion and $38 billion, respectively.
However, a smaller chunk of the market is pegged to other currencies, such as the Euro, the British pound, and the Turkish lira.
The TRYB stablecoin is one of these non-USD-pegged tokens, and it has recently gained popularity among crypto users in Turkey.
Data from Coingecko show the market cap of TRYB has surged by 325% to $136.10 million in three weeks.
That makes it the world’s second-largest non-USD-pegged stablecoin, just behind Tether’s euro-pegged stablecoin EURt, with a market cap of $224 million.
“Since the Turkish lira price has been very volatile and losing value against the U.S. dollar, the TRYB token is mostly a medium of exchange currency. Our customers have been using the TRYB token as a gateway to exchange their Turkish lira fiat into cryptocurrency and vice versa,”
BiLira told CoinDesk in an email.
However, although TRYB looks to have gathered traction in Turkey, USDT remains dominant.
In the past 24 hours, the USDT/TRY pair listed on the largest Turkey-based crypto exchange, BtcTurk, has seen a trading volume of $12.3 million, accounting for 18% of the total activity on the exchange.
Meanwhile, the total volume in TRYB trading pairs listed on MECX, Pangolin, and Icrypex is just $61,700.
The Mechanics of TRYB
The TRYB stablecoin works similarly to other Ethereum-based tokens that follow the ERC-20 standard. Users can create an account on BiLira’s website and verify their identity with their national ID and phone numbers.
Then, they can deposit Turkish lira to their account via bank transfer or credit card and receive an equivalent amount of TRYB tokens in their Ethereum wallet.
Users can also redeem their TRYB tokens for Turkish lira at any time by sending them back to BiLira’s smart contract address and withdrawing their fiat balance from their account.
BiLira claims that its stablecoin is fully backed by fiat reserves held in Turkish banks, which are audited by independent third parties on a monthly basis.
The company also says that it follows strict anti-money laundering (AML) and know-your-customer (KYC) policies to comply with local regulations.
However, some crypto enthusiasts have questioned the timing and magnitude of TRYB’s minting and burning events, which reflect the issuance and redemption of tokens.
For example, ChainArgos tweeted on X:
BiLira explained that it pre-mints an average of two days of supply and keeps it in a pre-mint wallet. The amount to be pre-minted depends on the daily issuance volume.
Users receive coins in their unique deposit controlled by BiLira. When redeemed, the tokens are sent to the TRYB Redemption Sweep wallet and then to the TRYB Burn Wallet.
“As an Emerging Country Stablecoin, minting and burning each issuance/redemption would make our operations unsustainable due to operational security standards and high gas costs,”
BiLira
The Future of TRYB and Other Non-USD-Pegged Stablecoins
The TRYB stablecoin is one of the examples of how crypto innovation can cater to the needs and preferences of different markets and regions.
While the U.S. dollar is still the dominant reserve currency in the world, some users may prefer to use stablecoins pegged to their local currencies or other assets they are more familiar with.
Non-USD-pegged stablecoins may also offer some advantages over USD-pegged ones, such as lower fees, faster transactions, and more accessibility.
For instance, some users may face difficulties or restrictions when trying to obtain USD or USD-backed tokens, especially in countries with capital controls or sanctions.
Non-USD-pegged stablecoins may provide an alternative solution for these users, as they can use their local currencies or other assets to access the crypto market.
However, non-USD-pegged stablecoins also face some challenges and risks, such as regulatory uncertainty, market volatility, and liquidity issues.
For example, the Turkish lira has been one of the most volatile fiat currencies globally, losing more than 40% of its value against the U.S. dollar in 2022.
This may affect the stability and trustworthiness of TRYB and other lira-backed tokens.
Non-USD-pegged stablecoins may have lower liquidity and adoption than USD-pegged ones, as they are less widely available and accepted on crypto platforms and services.
Therefore, non-USD-pegged stablecoins may not be able to compete with USD-pegged ones in terms of market share and influence, but they may still serve a niche market and provide more diversity and choice for crypto users.
