Tether Transfers Over $2B Worth of USDT to the Ethereum Network

Tether, the issuer of the popular stablecoin USDT, announced a major cross-chain swap on November 6, 2024, transferring over $2 billion worth of USDT

Tether, the company behind the world's largest stablecoin, USDT, has announced a massive cross-chain swap on November 6, 2024, shifting over $2 billion in USDT to the Ethereum network.

The swap entails transferring 1 billion USDT from the Tron network, 600 million USDT from Avalanche’s C-Chain, 300 million from the NEAR protocol, 75 million from Celo, and 60 million from EOS. This swap was conducted on behalf of a major exchange, whose identity remains undisclosed, to move USDT holdings from cold wallets to Ethereum.

According to Tether, this swap will not affect the total supply of USDT. This announcement comes amidst rumors, sparked by a Wall Street Journal report, that the U.S. government is investigating Tether for possible money laundering and sanctions violations. These reports briefly sparked fears in the crypto market.

In an effort to quell these concerns, Tether's CEO, Paolo Ardoino, addressed the company's reserves during a speech at an event in Switzerland. He disclosed that Tether's assets backing USDT include around $100 billion in U.S. Treasury bills, 82,000 Bitcoin (valued at $6.2 billion), and 48 tons of gold, which recently reached a record price of $2,790 per ounce.

During October 2024, USDT's market cap reached $120 billion, indicating strong trading activity. However, according to data from Chainalysis, many individuals now utilize stablecoins like USDT as a store of value, particularly in nations where local currencies are experiencing devaluation.

This cross-chain transfer further highlights Tether's strong presence in the crypto market and alleviates concerns about its stability, even as regulatory scrutiny continues.