Tether will transfer more than 2 billion USDT to the Ethereum network
Stablecoin issuer Tether has announced that on November 6, 2024, it is conducting a chain transfer of more than 2 billion Tether-USD (USDT) from various blockchain networks to the Ethereum network.
According to Tether, $1 billion will be transferred from the TRON network, $600 million from Avalanche C-chain, an additional $300 million from the NEAR protocol will go to the Ethereum network, and finally, 60 million USDT will be transferred from the EOS network to Ethereum.
The stablecoin firm explained that the cross-chain swap was performed on behalf of a large, unnamed exchange that wanted to transfer their USDT holdings from various cold wallets to the Ethereum blockchain.
Tether has confirmed to investors that the large chain transfer will not affect the total supply of USDT.
Tether tokens in circulation. Source: Tether
Related: Tether posts $2.5B in Q3 profits, 2024 revenue hits $7.7B
Tether CEO explains USDT support
USDT's large chain transfer comes amid an unsubstantiated report from the Wall Street Journal that the US government is investigating the stablecoin company for illegal money transfers and sanctions violations.
In response to the news, crypto markets briefly fell amid fear, uncertainty and investor skepticism. Market uncertainty over the digital asset market's biggest fiat off-ramp prompted Tether CEO Paolo Arduino to issue a statement at the Lugano Planbi event in Switzerland that backs the company's dollar-pegged stablecoin.
Distribution of Tether stock. Source: Tether
These reserve assets include nearly $100 billion in U.S. Treasury bills, 82,000 Bitcoin (BTC), worth about $6.2 billion using current market rates, and 48 tons of gold — which recently hit an all-time high of $2,790 against the U.S. dollar. .
By October 2024, Tethers USDT also reached a capitalization of $120 billion. This high market capitalization, seen by many traders as a proxy for trading activity in digital asset markets, is often seen as a great indicator of asset prices.
However, data from Chinalysis shows that stablecoins are increasingly used as stores of value in economies with rapidly depreciating local currencies, not market speculation.
Magazine: Unstable Coins: Devaluation, Bankruptcy and Other Risks Ahead.
