In return for 400 million USDT, Tether has arranged for the Huobi exchange, which is managed by Justin Sun, to carry out a chain swap, switching from Ethereum ERC20 to TRON TRC20.
Tether said:
“In a few minutes, Tether will coordinate with Huobi to perform a chain swap, converting from Ethereum ERC20 to Tron, for 400M USDt. The Tether total supply will not change during this process.”
The transfer of cryptocurrency from one blockchain to another is accomplished via a procedure known as a chain swap. Traders are able to acquire access to the numerous blockchains that allow the cryptocurrency that they are holding thanks to this procedure.
As a result, traders are able to utilize their digital assets on the blockchains that support the cryptocurrency that they possess. According to the information provided by Tether, there may be situations in which another cryptocurrency exchange contacts the firm with a request for a chain swap.
This is because the cryptocurrency exchange may have a surplus of money on one blockchain but a deficit on another blockchain. The exchange will communicate with Tether in order to verify the primary blockchain and the secondary blockchain that the money from the swap will be transferred between.
After verifying that these monies have been received in Tether’s treasury wallet on the original blockchain, the identical number of cash will be transmitted back to the other exchange through the destination blockchain. The whole of the chain swap procedure is handled in conjunction with the other exchange until it is brought to a successful conclusion.
