Tether will move 1 billion USDT from the Solana blockchain to the Ethereum network

The company’s total supply will not change after the withdrawal of the stablecoin to another network

21.11.2022 - 07:00

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What’s new? Tether announced that it will transfer $1 billion worth of centralized stablecoin USDT from the Solana blockchain to the Ethereum network. An unnamed third party will be involved in the exchange. The reason for the withdrawal of USDT from Solana was the blockchain’s association with Sam Bankman-Fried’s bankrupt trading firm, Alameda Research. According to a statement from Tether, the company’s total supply will not change after the coins are moved to another network.

In few minutes Tether will coordinate with a 3rd party to perform a chain swap, converting from Solana to Ethereum ERC20, for 1B USDt. The #tether total supply will not change during this process.Learn more about chain swaps ⬇️https://t.co/abfgnELSvi — Tether (@Tether_to) November 18, 2022

What happened before? Two crypto exchanges announced the implementation of restrictions on USDT and USDC issued on the Solana network. Binance suspended accepting deposits starting November 17, and OKX announced the delisting of both stablecoins.

Shortly thereafter, Tether assured that Alameda and its association with Solana would not affect USDT. The issuer’s representatives noted that stablecoins are fully backed by liquid reserves. According to them, Alameda’s investment in Solana also does not affect the operation and issuance of USDT.

Solana’s developers reported that the Solana Foundation held about $1 million in fiat and fiat equivalents on the bankrupt FTX exchange. That amount represents less than 1% of the organization’s assets, so the impact of FTX’s collapse on Solana is negligible, the team noted. Solana emphasized that it did not store native tokens SOL on the exchange.

As of November 21, 06:35 UTC, the native token SOL is trading at $11,84, down by 9,09% in 24 hours, according to Binance. The asset ranks 16th in the ranking of cryptocurrencies by capitalization with a figure of $4,3 billion, according to CoinGecko.

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