- Tether, the leading stablecoin issuer, is conducting a $1 billion USDT chain swap to the Tron network.
- Despite a recent decline in USDT market capitalization, likely attributed to the holiday season, Tether continues to lead the stablecoin market.
Tether, the largest stablecoin by market cap has hit media headlines after the company collaborated with a leading crypto exchange. Tether announced that this collaboration will see Tether conduct a $1 billion USDT chain swap. The migration of the stablecoin to the Tron network, will streamline operations and improve communication pathways between compatible blockchains.
On January 6, Tether disclosed via the X platform that it is working with a prominent third-party exchange to transfer $1 billion worth of USDT from cold wallets to the Tron blockchain. This chain swap will not alter the total supply of USDT but is expected to improve liquidity across various networks, enabling users and traders to seamlessly access their assets on any of Tether’s supported blockchains.
In the next hours Tether will coordinate with a 3rd party prominent exchange to perform a chain swap, converting part of their $USDt cold wallets from different blockchains to $USDt on Tron.
The #tether $USDt total supply will not change during this process.
Amount (subject to…— Tether (@Tether_to) January 6, 2025
USDT, Tether’s flagship stablecoin, operates on several blockchains, including Ethereum, Solana, and Tron. Tron has emerged as a primary platform for USDT, driving significant trading activity due to its low transaction fees and high-speed processing capabilities.
Notably, Chain swaps are pivotal in the crypto space, facilitating seamless asset transfers between blockchains. They enhance market efficiency by ensuring users can leverage liquidity and trading opportunities across multiple networks.
Besides this significant development, Tether has in the wake of this year, 2025 made headlines. As earlier reported, Tether joined the bandwagon of firms increasing their Bitcoin reserves. Notably, on December 30, the company transferred approximately $780 million worth of BTC to its corporate treasury, marking its largest Bitcoin purchase since March 2024.
It is worth noting, that this transfer saw the apex stablecoin issuer become the second largest private Bitcoin holder.
In the same vein, Tether continues to dominate in the stablecoin industry which is valued at over $200 billion in market capitalization. At the time of writing, Tether leads the pack in the fourth position right behind XRP with a $137.52B market cap. Additionally, Tether’s USDT has recorded an impressive $100.54B after a 30.62% surge.
On the other hand, the second popular stablecoin, the USDC, has a market cap of $45.8 billion and a daily trading volume of $7.7 billion.
On a broader scale, It is worth noting that Tether’s USDT stablecoin has recorded a 2.8% market cap drop since peaking at $141 billion on Dec. 19, 2024. In light of this , according to the crypto financial services platform Matrixport, this decline in Tether’s USDT market capitalization and volumes is not enough to suggest a bearish turn on markets.
However, USDT’s falling trend is likely a result of a trading slowdown linked to the holiday season and should not be associated with a bearish shift in crypto markets, Matrixport said in an X post on Jan. 6.
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