A $1 billion chain transfer to convert USDT from the Solana blockchain to the Ethereum blockchain was just announced by stablecoin issuer Tether on Twitter.
Transferring cryptocurrency from one blockchain to another is referred to as a ‘chain swap’. The chain swap process "allows traders to obtain access to the various blockchains that support the cryptocurrency that they are holding, thereby enabling the use of their digital assets on these other supporting blockchains." Whenever demand for using its stablecoins shifted from one blockchain to another, Tether performed this process many a time in the past. For instance, in mid-2020, Tether swapped $1 billion in USDT from Tron to Ethereum twice.
In the wake of the failure of FTX, Solana, which was one of the top five cryptocurrencies only a few weeks ago, is experiencing problems. The Solana Foundation, a non-profit organization that supports the development of the Solana blockchain, also acknowledged having $1 million in cash or other equivalent assets that were trapped on FTX. However, earlier Solana’s co-founder vehemently denied to having large exposure on FTX or that the bankruptcy would have any catastrophic effect.
Earlier this week, Binance suspended deposits of USDC and USDT from Solana but quickly resumed them shortly after. This announcement came after a rival exchange, OKX, delisted both USDC and USDT on Solana, and also stopped accepting deposits or withdrawals.