Tether Shuffle: 750 Million USDT Moved from Tron to Ethereum

The company behind the issue of the USDT stablecoin, Tether Holdings, has announced that it will work with a third-party exchange. Change 750 million USDT from Tron to Ethereum ERC20 via chain swap.

With a current market valuation of $83.37 billion, USDT is by far the most valuable stablecoin in existence. The use of stablecoins has increased over the past few years, and Tether has been working hard to diversify its reserve holdings in response to the growing need for trust in the network.

In order to maintain the stablecoin’s liquidity, cryptocurrency exchange Binance said via Twitter on Monday that it will arrange to swap 750 million Tether-Tron token pairs for Tether-Ether. Tether assures that this will not result in an increase or decrease in the overall supply of USDT.

Today after 12 noon UTC, #binance Tether will be swapping 750M USDT-TRX for USDT-ETH directly with the team to ensure stablecoin liquidity across all chains for our users.

If you see any significant USDT movement from our wallets today, here’s why.

Funds are SAFU.

– Binance (@binance) June 12, 2023

Tether lock on 1:1 USD anchor

Tether, the most popular stablecoin, strives to have a one-to-one exchange rate with the US Dollar (USD) at all times. The token swap will include Tron, the ninth largest cryptocurrency by market cap after bitcoin at $210 billion, at $6.3 billion, and Ether, the second largest cryptocurrency by market cap.

By exchanging bitcoin from one blockchain to another, or “swapping the chain,” investors can gain access to all of the blockchains that back the digital money they hold. Their digital assets can be used on other blockchains that support them.

The move to rebalance USDT’s liquidity base on Ethereum by moving from an area of ​​surplus to an area of ​​shortage remains the most reasonable explanation of the various theories as to why USDT is being replaced.

Meanwhile, the increased regulatory scrutiny of Binance has been detrimental to the exchange, prompting this strategic shift. Binance is now engaged in litigation with the US Securities and Exchange Commission, which highlights the importance of taking preventive action in light of the current regulatory environment.

ETH market cap currently at $210 billion. Chart: TradingView.com

Restoring the Ethereum Network Inventory

Binance, its CEO Changpeng Zhao, and Binance.US were all named in a lawsuit brought by the SEC last week. Binance has been accused of engaging in alleged deceptive practices, manipulating trading volumes, diverting user funds, and concealing the identities of those in control of the company in the United States.

Tether reprinted $1 billion in USDT on the Ethereum blockchain on Monday, triggering a swap. Tether CTO Paolo Ardoino tweeted that the recent $1 billion mint was part of the company’s effort to restore its Ethereum network storage.

In a related development, as of March, both the Tron Foundation and its creator, Justin Sun, were charged with fraud by the SEC. As a result, Binance USA announced that it would be delisting the digital asset token Tron from its exchange.

At the time of writing, Ether (ETH) was trading at $1,744, down 6.33% over the past seven days, data from crypto market tracker coinmark cap shows. Tether (USDT), on the other hand, is featured in red and is trading at $0.99.

Source: CoinMarketCap

Featured image from The Cryptonomist