Tether, top crypto exchange to swap $1b USDT to Tron network

Tether and a leading third-party cryptocurrency exchange announced a chain swap that will move 1 billion USDT from other blockchains to the Tron network.

On January 6, stablecoin issuer Tether announced plans to coordinate with a major exchange to facilitate chain swaps on X.

According to the announcement, the coordination will enable Tether and the exchange to convert a portion of the third-party provider’s Tether (USDT) held in cold wallets into the Tron (TRX) network. USDT will be exchanged from different blockchains.

Tether’s USDT is available on multiple blockchains, including Ethereum, Tron, and Solana. The stablecoin issuer clarified that the chain swap will not affect the total USDT supply.

Chain swaps involve the movement of crypto from one blockchain to another.

This is key to the trading market as it helps investors use their digital assets on any supported blockchain. Tether’s flagship stablecoin is a major player in the crypto industry; users trade billions of dollars every day for payments, commerce and cross-border transactions.

USDT holders can trade without the inherent volatility that largely characterizes the crypto market.

The stablecoin is pegged 1:1 to the US dollar and dominates the industry across the ecosystem, with a market cap currently exceeding $137 billion. Circle’s USDC (USDC) is the second largest stablecoin with a market cap of $45.8 billion.

Data shows that Tether’s 24-hour trading volume is around $102.5 billion, representing a 61% increase in the last 24 hours. USDCs are around $7.1 billion, up 80% in the last 24 hours.

While Tether continues to lead the stablecoin space in terms of market share, its market value has recently suffered as the European Union’s Crypto Asset Markets regulation came into full force last December.