There are some interesting developments in the world of cryptocurrency and blockchain technology. Tron Inc., known for its innovations in the blockchain space, is planning to use its native TRX token as a corporate reserve asset. This could be the first time that a US company uses a native blockchain token as collateral.
Strategy Backing
The strategy is backed by $100 million in private investment, which suggests that some investors see potential in this solution. However, despite the support, there are risks to consider.
Risks and Challenges
One of the main risks is that TRX is less liquid and centrally controlled than Bitcoin. This could make the strategy riskier compared to using Bitcoin treasuries. Additionally, if confidence in Tron Inc. is shaken, it could lead to a drop in TRX and a decrease in the company’s value.
Context and Comparison
In 2025, more companies are using cryptocurrency in treasuries. However, Tron’s strategy is different from other crypto treasuries because it uses its own token. TRX is the eighth largest cryptocurrency by market cap, but it trades with less volume than Bitcoin. This may impact the liquidity and stability of the strategy.
Political and Legal Considerations
It is important to note that the involvement of politically connected individuals may raise questions about impartiality and independence. For example, Eric Trump has denied involvement in the new Tron company, but the very fact that such a connection is discussed may affect the perception of the company in the market.
The SEC and Tron have pending cases related to the sale of unregistered securities through TRX and BitTorrent. This adds a legal aspect to the consideration of the company’s strategy.
Comparison with Circle’s IPO
For comparison, Circle, which successfully completed an IPO, can be used as an example. This makes its approach more transparent. Tron’s reverse listing may be less reliable due to its history of financial irregularities. The SEC changed the listing rules in 2011 after Chinese companies entered the US markets, which also affects the perception and evaluation of such strategies.
Overall, Tron Inc’s decision to use TRX as a corporate reserve asset is an interesting development that could have both positive and negative consequences. Time will tell how successful this strategy will be.
