- Tether swapped over 2 billion USDT from Tron, Avalanche, Near Protocol, and EOS networks to the Ethereum network.
- The cross-chain transfer was performed on behalf of a large unnamed exchange to move their USDT holdings to the Ethereum blockchain.
- Tether assured that the transfer would not affect the total supply of USDT in circulation.
Tether, a leading stablecoin issuer, announced a significant cross-chain transfer of over 2 billion USDT from multiple blockchains to the Ethereum network on November 6th. This large-scale movement of stablecoins was performed on behalf of a major cryptocurrency exchange looking to consolidate its USDT holdings on Ethereum.
Details of the Cross-Chain Transfer
According to Tether, the cross-chain swap involved:
- 1 billion USDT transferred from Tron
- 600 million USDT moved from Avalanche C-Chain
- 300 million USDT switched from Near Protocol
- 60 million USDT ported over from EOS
The stablecoin firm assured investors this would not affect the total supply of USDT in circulation.
Reasons for the Transfer
The exchange initiated this swap to transfer USDT holdings from various cold wallets to the Ethereum blockchain. Ethereum currently hosts the vast majority of Tether trading activity due to its unrivaled liquidity and variety of DeFi applications.
This cross-chain shuffle comes amid recent speculation over Tether’s reserves backing USDT. The company’s CEO recently provided a breakdown of assets securing the peg, including $10 billion in U.S. Treasuries, over 80,000 BTC, and 48 tons of gold.
While some speculate Tether swaps could signal impending price volatility, stablecoin transfers increasingly reflect their growing utility as a store of value in countries with weak local currencies.
Conclusion
The ability to efficiently move billions in stablecoins across blockchains highlights the improving interoperability and maturity of the crypto ecosystem. As adoption advances, expect more value to concentrate on networks offering the best liquidity, functionality, and transparency. Tether’s dominance and ongoing growth depends on providing traders with the flexibility to access opportunities across different chains.
