Tron Inc. Registers $1 Billion in Securities as It Shifts to TRX-Centric Crypto Treasury Model
In a move that signals a bold pivot into the world of decentralized finance, Tron Inc., the Nasdaq-listed firm formerly operating in the toy and souvenir market, has filed to register up to $1 billion in securities with the U.S. Securities and Exchange Commission (SEC). The goal? To create a TRX-focused crypto treasury, marking a complete departure from its legacy business model.
According to a regulatory filing submitted Monday, the company aims to issue a mix of equity, debt, and financial instruments “from time to time,” using the proceeds primarily to accumulate TRX tokens—the native cryptocurrency of the Tron blockchain—and develop yield-generating strategies based on those holdings.
This radical transformation echoes moves made by other public companies entering crypto, most notably Michael Saylor’s MicroStrategy, but comes with a distinctly higher risk profile due to the lower liquidity and smaller market presence of TRX compared to Bitcoin.
A $1 Billion Bet on the Tron Ecosystem
Tron Inc. made headlines last month when it completed a reverse merger funded with $100 million in TRX, acquired from a Hong Kong trust tied to its board. The firm has now formalized its intent to make TRX the cornerstone of its future financial operations.
“In a volatile market, we believe a blockchain-centric treasury, rooted in active participation in the Tron ecosystem, represents a more sustainable and scalable model,” the company wrote in its filing.
The funds raised will be used to acquire TRX on the open market, invest in DeFi protocols such as SunSwap and JustLend, and develop new onchain income streams. These may include staking, liquidity provision, and other decentralized strategies designed to generate returns without relying on legacy operations.
Governance Concerns and Justin Sun’s Proximity
Although Tron founder Justin Sun is not officially involved in Tron Inc., red flags are being raised across governance circles due to the company’s leadership structure. Weike Sun, Justin’s father, chairs the board. The firm also includes a Tron DAO advisor and Tronscan’s lead developer as directors, drawing scrutiny over potential conflicts of interest and transparency.
Further complicating matters is the $100 million in TRX used to finance the company’s reverse merger in June. The tokens were held by a Hong Kong trust whose leadership overlaps with Tron Inc.’s board—a move critics say creates an opaque relationship between Tron Inc. and the broader Tron blockchain ecosystem.
“This isn’t just a play on TRX. It’s a governance test,” said blockchain governance expert Lana Ochoa. “The lines between Tron the protocol and Tron Inc. the company are blurred, and that opens the door to questions about fiduciary responsibility and insider control.”
Why TRX? The Stablecoin and DeFi Momentum
Despite the governance concerns, Tron’s blockchain is showing undeniable momentum. In June, the TRON network overtook Ethereum as the largest host of Tether (USDT) in terms of supply. TRON now holds $80.8 billion in USDT, compared to Ethereum’s $73.8 billion.
The difference in usage is even more dramatic. On a daily basis, TRON processes seven times more USDT transactions than Ethereum, and handles over $24.6 billion in transfers per day. These metrics reinforce TRON’s position as the go-to chain for low-fee, high-volume stablecoin activity, particularly in emerging markets.
“TRON is fast, frictionless, and increasingly trusted by DeFi users seeking efficiency,” said crypto market strategist Neil Akbar. “Its gasless model is changing the game, especially for microtransactions and retail remittances.”
The blockchain recently recorded 273 million transactions in May, and hit a new high of 28.7 million active addresses in June, showcasing widespread engagement across retail and institutional segments alike.
Tron’s Expanding DeFi Footprint
While the TRX token historically took center stage on the network, recent data shows that USDT and USDD stablecoins are now dominating user activity. Protocols like SunSwap, a decentralized exchange, and JustLend, a lending platform, are experiencing sustained growth, with the latter seeing a 23% year-over-year rise in borrowing volume.
Despite the platform’s gasless features, TRON still generated $308 million in fee revenue in June, driven by layered DeFi services, liquidity provisioning, and institutional usage.
That fee revenue is what Tron Inc. is betting on. By locking TRX into these protocols, the firm aims to extract yield from core network activity without being overly exposed to speculative price swings.
A High-Risk, High-Reward Shift
Yet the move is not without risk. Unlike Bitcoin, TRX is not widely held by institutions and lacks the same liquidity depth. In its own filing, Tron Inc. acknowledged that a “decline in TRX prices or waning investor interest” could impact its ability to raise capital in future rounds. The company also disclosed that its former business—souvenirs and toys—“did not generate positive cash flow from operations” in 2024.
In the absence of operational income, Tron Inc. will rely heavily on market appetite for its securities to fund the TRX strategy and manage its balance sheet obligations.
“It’s a moonshot bet,” said crypto investment analyst Rae Donovan. “You’re backing not just TRX, but a narrative that TRON will evolve into a dominant layer for DeFi, stablecoins, and tokenized commerce. There’s potential, but the execution risk is massive.”
What This Means for Investors and the Crypto Landscape
With more public companies flirting with blockchain treasury strategies, Tron Inc.’s pivot could set a precedent for mid-cap firms looking to reinvent themselves via crypto. However, the success of this approach will likely depend on regulatory clarity, governance transparency, and consistent onchain performance.
For now, Tron Inc. is leaning all-in on a future tied to decentralized finance. Whether this strategy will reward investors or end in collapse remains to be seen—but there’s no question that TRX just got its biggest corporate backer yet.
