Tether, the issuer of the widely used stablecoin USDT, completed a large-scale cross-chain transfer on November 6, 2024, moving over $2 billion in USDT to the Ethereum blockchain.
The transfer, made on behalf of an undisclosed major exchange, involved shifting significant amounts from several blockchain networks.
This included moving 1 billion USDT from Tron, 600 million from Avalanche, 300 million from NEAR, 75 million from Celo, and 60 million from EOS—all redirected to Ethereum.
According to Tether, this transfer is part of its efforts to optimize liquidity across networks for the growing demand in Ethereum-based transactions.
Importantly, Tether assured users that this move does not affect the total supply of USDT, as the transfer is merely shifting funds across networks rather than creating new tokens.
The large transfer comes at a time of increased scrutiny, with recent reports suggesting that the U.S. government may be investigating Tether for potential money laundering and sanctions violations.
These reports briefly stirred market concerns, leading to a slight dip in crypto prices.
To address the growing concerns, Tether’s CEO, Paolo Ardoino, recently highlighted the company’s asset reserves, noting a robust backing that includes around $100 billion in U.S. Treasury bills, 82,000 Bitcoin (valued at $6.2 billion), and 48 tons of gold.
He emphasized that Tether’s reserves are solidly diversified to maintain stability for USDT users, even during volatile times.
Amid growing economic instability globally, many people are increasingly relying on stablecoins like USDT as a store of value, especially in regions with weakening local currencies.
Recent data has shown that USDT’s market cap hit an impressive $120 billion in October 2024, underscoring its significant role in crypto markets worldwide.
