The stablecoin issuer, Tether, has announced an on-chain swap of 1 billion USDT from the Solana blockchain to the Ethereum blockchain.
The holdings of Tether, in addition to the issue of whether or not its USDT stablecoin is completely backed by dollars, are a cause of worry for the corporation.
Solana is still dealing with the aftermath from the collapse of FTX when this statement was made. This particular trade will be executed with the aid of a third party.
The following exchanges provide trading in USDT: Avalanche, Tezos, Algorand, Near, Polygon, Omni, EOS, Liquid, Statemint, SLP, and Statemine. Availability may vary by exchange.
Along with the announcement was a detailed explanation of how on-chain swaps might be used to move USDT from one blockchain to another.
The customers of the exchanges have the ability to deposit Tether on one blockchain, such as Tron, and withdraw the money on another blockchain, such as Ethereum.
It’s possible that an exchange may demand that USDT be shifted from one chain to another so that they can equally distribute their USDT holdings. Before moving the USDT to the other chain, it is first moved from the blockchain that created it to a wallet that is associated with the Tether treasury.
Compiled by Coinbold