The company behind issuing the USDT stablecoin, Tether Holdings, has announced that it will work with a third-party exchange to turns up $750 Million From Tron To Ethereum ERC20 Via Chain Swap.
With a current market cap of $83.37 billion, USDT is by far the most valuable stablecoin in existence. Stablecoin usage has skyrocketed over the past few years, and Tether has worked hard to diversify its reserves in response to the growing need for trust in the network.
To maintain the stablecoin’s liquidity, cryptocurrency exchange Binance said via Twitter on Monday that it will arrange the swap of 750 million Tether-Tron token pairs for Tether-Ether. Tether confirmed that the overall supply of USDT would neither increase nor decrease as a result.
After 12 PM UTC today, # Finance You will exchange 750 million USDT-TRX for USDT-ETH directly with the Tether team to ensure stable coin liquidity across all chains for our users.
If you see any significant moves in USDT from our portfolios today, this is why.
SAFU funds.
– Binance (binance) June 12, 2023
Rope locks on anchor 1:1 in USD
Tether, the most popular stablecoin, seeks to maintain 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 at $6.3 billion, and Ether, the second largest cryptocurrency by market cap at $210 billion, after Bitcoin.
By exchanging bitcoins from one blockchain to another, or “swap chains,” investors can access all of the blockchains that support the digital money they hold. Their digital assets can be used in other blockchains that support them.
The move to rebalance USDT’s liquidity base on Ethereum by shifting from an area of excess to an area of scarcity remains the most plausible explanation for the various theories being put forward as to why USDT has changed.
Meanwhile, increasing regulatory scrutiny on Binance has been detrimental to the exchange, which has led to this strategic shift. Binance is now involved in a lawsuit with the US Securities and Exchange Commission, highlighting the importance of taking precautionary measures in light of the current regulatory environment.
ETH market cap currently at $210 billion. Chart: TradingView.com
Restore the Ethereum network inventory
Binance, its CEO Changpeng Zhao, and Binance.US were named in a lawsuit filed by the Securities and Exchange Commission last week. Binance has been accused of engaging in alleged deceptive activities, manipulating trading volumes, funneling user funds, and maintaining the secrecy of the identities of those who control the company in the US.
Tether mint returned $1 billion in USDT on the Ethereum blockchain on Monday, prompting the swap. Tether CTO Paolo Arduino tweeted that the recent $1 billion mint was part of the company’s efforts to restock the Ethereum Network storage network.
In a related development, as of March, the Tron Foundation and its creator, Justin Sun, have been accused of fraud by the SEC. As a result, Binance USA has announced that it will withdraw the digital asset token tron from the exchange.
At the time of writing, Ether is trading (ETH is trading at $1,744, down 6.33% in the past 7 days, data from Crypto Market Tracker CoinMarkeCap Offers. On the other hand, Tether (USDT) is painted red and is trading at $0.99.
Source: CoinMarketCap
Featured image from The Cryptonomist