Tether Enables Binance To Convert 3B USDT From Tron To Ethereum

Zinger Key Points
  • Tether is assisting Binance in transferring 3 billion USDT from the Tron network to the Ethereum network.
  • Earlier today, Binance temporarily stopped processing withdrawals of stablecoin USDC due to insufficient platform reserves.
Tether Enables Binance To Convert 3B USDT From Tron To Ethereum

Tether revealed it helped cryptocurrency exchange Binance with a "chain swap" in which 3 billion USDT/USD will be transferred from the Tron network to the Ethereum network.

"In a few minutes, Tether will coordinate with Binance to perform a chain swap, converting from Tron to Ethereum ERC20, for 3B USDT. The tether total supply will not change during this process," Tether stated.

In this case, a chain swap from the Tron network to the Ethereum network will be carried out by Tether

The Tether-issued USDT token is used to simplify trading operations on cryptocurrency exchanges like Binance. It is distributed on Ethereum ETH/USD, Tron TRX/USD, and other blockchain networks.

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Adjusting Reserves

The transaction is a part of Binance's attempts to shift USDT balances from its cold wallets on Tron to Ethereum, according to Tether CTO Paolo Ardoino.

Here, Binance will transfer 3 billion USDT to Tether's Tron treasury account from its Tron wallet.

A similar amount of USDT Binance ERC20 cold wallets on Ethereum are then sent back by Tether.

“Likely Binance has mostly USDT-on-Tron in its cold wallets and might want to rebalance its cold wallet, moving part of its Tether reserves to USDT-on-Ethereum,” Ardoino said.

Due to insufficient platform reserves, Binance temporarily halted processing withdrawals of another stablecoin, USDC, earlier today Binance CEO Changpeng Zhao revealed.

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Posted In: CryptocurrencyNewsTop StoriesMarketsBinanceChangpeng ZhaoStablecoinTetherTron network

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