Tether and the largest third-party cryptocurrency exchange have announced a chain swap that will move $1 billion from other blockchains to the Tron network.

On January 6, stablecoin issuer Tether posted on X that it plans to coordinate with a major exchange to facilitate on-chain swaps.

According to advertisementThe format will see Tether and the exchange transfer a portion of its Tether to the third-party provider (USDT(Held in cold wallets to see)TRX) network. USDT will be swapped from different blockchains.

Tether's USDT is available on several blockchains, including Ethereum, Tron, and Solana. The stablecoin source explained that the on-chain swap will not affect the total supply of USDT.

On-chain swaps involve the movement of cryptocurrencies from one block chain to another.

This is essential for the trading market as it helps traders use their digital assets on any of the supported blockchains. Tether's flagship stablecoin is a major player in the cryptocurrency industry, with billions of dollars in circulation daily as users leverage it for cross-border payments, trading, and transactions.

USDT holders can transact without the inherent volatility that largely characterizes the cryptocurrency market.

The stablecoin is pegged 1:1 to the US dollar and currently dominates the sector across the ecosystem with a market capitalization of over $137 billion. Circuit USDC (US dollars) is the second largest stablecoin with a market capitalization of $45.8 billion.

Data indicates that Tether's 24-hour trading volume is approximately $102.5 billion, representing a 61% increase over the past 24 hours. USDC is worth around $7.1 billion, up 80% in the last 24 hours.

While Tether continues to lead the stablecoin space in terms of market share, its market capitalization has suffered recently with EU market regulation in crypto assets coming into full effect last December.