Tether to Transfer $1 Billion USDT to Tron Blockchain in Major Crypto Exchange Move

Tether, in collaboration with a leading cryptocurrency exchange, has disclosed plans for a chain swap to transfer $1 billion USDT from various blockchains to the Tron ecosystem.

On Jan. 6, the stablecoin entity Tether revealed on X its intentions to work in tandem with a prominent exchange to orchestrate the chain swap operation.

The collaborative measure involves transitioning a segment of the exchange’s cold-stored USDT to the Tron (TRX) network, with USDT being moved from diverse blockchains.

With USDT supported by several blockchains such as Ethereum, Tron, and Solana, Tether emphasized that this chain swap process will not alter the total supply of USDT in circulation.

Recommended reading: Tether, TRON, and TRM Labs team up to immobilize $100m worth of illicit crypto assets

Chain swaps are aimed at transferring cryptocurrency assets between different blockchains.

This flexibility is crucial for traders, allowing them to utilize their digital assets within the ecosystem of supported blockchains. Tether’s primary stablecoin product plays a significant role in the crypto sphere, facilitating billions in daily transactions for payments, trades, and international dealings.

USDT provides stability for users amidst the typically volatile crypto market, maintaining a steadfast 1:1 peg with the U.S. dollar. It is a dominant force in the stablecoin niche, boasting a market capitalization in excess of $137 billion, while Circle’s USDC ranks second with a $45.8 billion market cap.

Recent figures reveal that the 24-hour trading volume for Tether is near $102.5 billion, indicating a 61% surge within a day. Meanwhile, USDC’s trading volume hovers around $7.1 billion, up by 80% in the same timeframe.

Despite Tether’s dominance in market share, its market capitalization has faced a decline following the implementation of the European Union’s Markets in Crypto-Assets (MiCA) regulation last December.

Also of interest: Tether’s valuation contracts by $1.4 billion following MiCA enforcement