Tether and a Top Third-Party Cryptocurrency Exchange Announce a Chain Swap That Will Move $1B USDT to the Tron Network

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

Stablecoin issuer Tether is set to coordinate with a top third-party cryptocurrency exchange to facilitate a chain swap that will move $1 billion USDT from other blockchains to the Tron network.

On Jan. 6, Tether announced the planned chain swap in a post on X. The stablecoin’s USDT is available on multiple blockchains, including Ethereum, Tron, and Solana.

According to the announcement, the coordination will see Tether, the exchange, convert a portion of the third party provider’s Tether (USDT) held in a cold wallet to the Tron (TRX) network. The USDT will be swapped from different blockchains.

Chain swaps involve the movement of crypto from one blockchain to another. This is key to the trading market as it helps traders to use their digital assets on any of the supported blockchains.

Tether’s flagship stablecoin is a major player in the crypto industry, with billions of dollars traded daily as users tap into it for payments, trading, and cross-border transactions.

USDT holders can transact without the inherent volatility that largely characterizes the crypto market. The stablecoin is pegged 1:1 to the U.S. dollar, and currently dominates the sector across the ecosystem with over $137 billion in market cap.

Circle’s USDC (USDC) is the second-largest stablecoin with a market cap of $45.8 billion.

Data shows Tether’s 24-hour trading volume is around $102.5 billion, with this representing a 61% increase in the past 24 hours. USDC’s stands around $7.1 billion, up 80% in the past 24 hours.

While Tether continues to lead the stablecoin space by market share, its market cap has recently suffered as the European Union’s Markets in Crypto-Assets regulation came into full effect last December.