Tether, the stablecoin issuer, has announced a 1 billion USDT on-chain transfer from the Solana blockchain to the Ethereum blockchain.
Before diving into this piece, you may want to catch up on some relevant stories, like how Genesis required a $1 billion emergency loan before they could stop withdrawals and how Binance US is preparing to make a bid for Voyager Digital.
Tether's assets are a cause of worry for the corporation, as is the issue of whether its USDT stablecoin is entirely backed by dollars.
The news comes as Solana struggles with the impact of FTX's demise. The present exchange will be completed with the help of a third party.
The following exchanges accept USDT: Avalanche, Tezos, Algorand, Near, Polygon, Omni, EOS, Liquid, Statemint, SLP, and Statement.
The announcement was followed by an explanation of how USDT is transferred from one blockchain to another via on-chain swaps.
Customers may deposit Tether on one blockchain, such as Tron, and withdraw it on another, such as Ethereum, via the exchanges.
An exchange may demand that USDT be shifted from one chain to another in order to equally distribute its USDT holdings. Before being transmitted to the opposite chain, the USDT is moved from the source blockchain to a Tether Treasury wallet.
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