Tether Assists Binance Swapping 3B USDT From Tron To Ethereum As Pressures Increase

Tether has assisted Binance to convert 3 billion USDT from the Tron (TRX) network to Ethereum (ETH). This comes at a moment in which there was a peak in withdrawals from the Binance exchange to other wallets. It is worth mentioning that there have been growing pressures for Binance as multiple sources believe that its proof of reserves is not correct. 

Tether Helps Binance Swapping USDT on Tron to Ethereum

Binance, the largest cryptocurrency exchange in the world, requested help from Tether to swap 3 billion worth of USDT from the Tron network to Ethereum. The information was released by Tether on Twitter a few hours ago. 

On that matter, the company wrote:

“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.”

In 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.

Learn more about chain swaps ⬇️https://t.co/abfgnELSvi

— Tether (@Tether_to) December 13, 2022

Cryptocurrency swapping is a very common process that takes place when a party exchanges cryptocurrencies from one blockchain network to another. Tether (USDT) is the largest stablecoin in the market and it has a large impact on the crypto industry. 

Another thing that we should mention about USDT is that Binance has mostly USDT-on-Tron in its cold wallets. The goal was to transfer some of this liquidity to Ethereum wallets for USDT-on-Ethereum needs. This is according to Paolo Ardoino, the CEO of Tether. 

According to data shared by CoinGecko, Tether has a market capitalization of $65 billion and is the third-largest digital asset in the market after Bitcoin and Ethereum. At the same time, Binance Coin (BNB) has also had a very negative day as it registered the sixth-largest drop among the top 100 cryptocurrencies. 

There has been a large uncertainty around Binance Coin (BNB) and Binance after what happened with the FTX cryptocurrency exchange. FTX imploded a few weeks ago when it was discovered that Alameda faced issues with its collateral. FTT, the native digital asset to the FTX platform dropped below $2 per coin after being valued at over $25 last month. 

Contagion effects have been very possible and many companies have taken extreme measures to protect their clients. Binance, as the largest crypto trading platform in the world, has also been scrutinized and is at the centre of the storm as it could also be affected by the current market uncertainty. 

Finally, it is worth taking into consideration that Binance has temporarily stopped processing withdrawals for USDC (USD Coin). This was due to issues with their availability of funds in multiple US banks. 

Users from all over the world have been taking their funds out of exchanges after what they experienced with FTX. Despite the fact that Binance is the largest crypto trading platform, there have been doubts about its proof of reserves. It will be very important to see what could happen with Binance and other cryptocurrency exchanges in the future as fears grow in the crypto industry.