- Tether announces a chain swap transaction containing $1 billion worth of its stablecoin, USDt, from the Tron blockchain to Ethereum.
In an announcement made on Monday, the stablecoin issuer stated the swap will be completed in two tranches, starting Tuesday, September 15. A tweet from the official page of Tether vaguely stated the swap will be completed by a Tier 1 exchange, which asked to perform the swap. The tweet reads,
Tomorrow Tether will coordinate with a 3rd party to perform two chain swaps (conversion from Tron to ERC20 protocol) for 1B USDt.
Tether total supply will not change during this process.
Read more here: https://t.co/abfgnELSvi
— Tether (@Tether_to) September 14, 2020
A token chain swap is a process of moving tokens from one blockchain to another. This process allows users to directly trade on one blockchain instead of another e.g. a user can move their tokens from the Ethereum blockchain to Omni or Tron. It happens solely on the demand by users and issuers have no power over the chain swap.
This does not change the total market capitalization and supply of USDt.
The latest Tether chain swap from TRON to Ethereum comes three weeks following a similar move in August. As the decentralized finance (DeFi) space grows, investors are moving their capital to Ethereum in a bid to capture the gains from the emerging field.
This will set the TRON blockchain aback to about 43.7 billion in total supply hosted by the blockchain while ERC-20 based USDt market cap surges to $9.8 billion.
Tether is opening up its borders to faster and more scalable blockchains such as Solana and Algorand in a bid to ease the congestion on Ethereum. However, the demand for ERC-20 based USDt does not seem to end any time soon as exhibited by the latest chain swap.