Tether plans $2B USDT chain swap to Ethereum

Tether (CRYPTO:USDT) has announced a significant $2 billion chain swap, transferring a portion of its USDT reserves from several blockchains to Ethereum (CRYPTO:ETH).

This process involves converting Tether's holdings on networks like Tron (CRYPTO:TRX), Avalanche (CRYPTO:AVAX), Near Protocol (CRYPTO:NEAR), Celo (CRYPTO:CELO), and EOS into Ethereum-based USDT, while ensuring the overall supply of USDT remains the same.

According to Tether’s breakdown, the funds moving to Ethereum include $1 billion USDT from Tron, $600 million from Avalanche, $300 million from Near Protocol, $75 million from Celo, and $60 million from EOS, totaling $2.03 billion.

Tether explained that this chain swap aims to “increase liquidity and guarantee that customers can access their funds across several blockchains,” underscoring its intent to meet user demand for more accessible Ethereum-based USDT.

A chain swap is a method that enables cryptocurrency to be transferred across different blockchains, enhancing asset accessibility on various networks.

By moving these reserves to Ethereum, Tether’s goal is to support liquidity within the Ethereum network, a widely used blockchain for decentralised finance applications.

This transition offers increased accessibility for Ethereum users, especially those utilising Ethereum’s extensive decentralised finance (DeFi) ecosystem.

Tether emphasised that this swap will not alter the overall supply of USDT, only reallocating assets to Ethereum from other blockchains.

The move demonstrates Tether’s strategy to adapt to market trends and optimise asset distribution across networks, aiming to serve users across multiple blockchain platforms efficiently.

With this $2 billion shift, Tether maintains a focus on flexibility and user accessibility, balancing asset allocations to meet evolving needs in the digital finance space.

At the time of writing, the Tether price was $1.00, and the Ethereum price was $2,933.88.