Author: Vince Quill, CoinTelegraph; Translated by: Wu Zhu, Jinse Finance
The stablecoin issuer Tether announced a large-scale cross-chain transfer scheduled for November 6, 2024, which will transfer over $2 billion Tether-USD from various blockchain networks to the Ethereum network.
According to Tether, $1 billion will be transferred from the Tron network, $600 million will be transferred from the Avalanche C chain, another $300 million will also be transferred from the NEAR protocol to the Ethereum network, and finally, $60 million will be transferred from the EOS network to Ethereum.
The stablecoin company explained that this cross-chain exchange is on behalf of a large unnamed exchange that wishes to transfer its USDT holdings from various cold wallets to the Ethereum blockchain.
Tether also assured investors that the large-scale cross-chain transfer would not affect the total supply of USDT.
Tether's CEO clarifies the reserves backing USDT
Amid unverified reports from The Wall Street Journal that the U.S. government is investigating the stablecoin company for alleged money laundering and violations of sanctions, USDT underwent a large-scale cross-chain transfer.
In response to this news, the cryptocurrency market briefly dipped, causing investors to fall into fear, uncertainty, and doubt. Market uncertainty surrounding the largest fiat currency exporter in the digital asset market prompted Tether's CEO Paolo Ardoino to reveal details of the company's reserve assets backing its stablecoin pegged to the US dollar at the PlanB event in Lugano, Switzerland.
Tether reserve details. Source: Tether
These reserve assets include approximately $100 billion in U.S. Treasury bills, 82,000 bitcoins (valued at about $6.2 billion based on current market prices), and 48 tons of gold (which recently hit a historic high of $2,790 per ounce against the dollar).
In October 2024, the market value of Tether's USDT reached $12 billion. This high market value is seen by many traders as a representation of increased trading activity in the digital asset market and is generally regarded as a bullish signal for asset prices.
However, data from Chainalysis shows that stablecoins are increasingly being used as a store of value in economies experiencing rapid currency devaluation, rather than for market speculation.
