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

On Jan. 6, stablecoin issuer Tether posted on X that it plans to coordinate with a major exchange to facilitate the chain swap.

According to the announcement, the coordination will see Tether and the exchange convert a portion of the third party provider’s Tether (USDT) held in cold wallets to the Tron (TRX) network. The USDT will be swapped from different blockchains.

Tether’s USDT is available on multiple blockchains, including Ethereum, Tron, and Solana. The stablecoin issuer clarified that the chain swap will not impact the total supply of USDT.

Chain swaps involve the movement of crypto from one blockchain to another. 

This is key to the trading market as it helps traders to use their digital assets on any of the supported blockchains. Tether’s flagship stablecoin is a major player in the crypto industry, with billions of dollars traded daily as users tap into it for payments, trading and cross-border transactions.

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

The stablecoin is pegged 1:1 to the U.S. dollar and currently dominates the sector across the ecosystem with over $137 billion in market cap. Circle’s USDC (USDC) is the second largest stablecoin with a market cap of $45.8 billion.

Data shows Tether’s 24-hour trading volume is around $102.5 billion, with this representing a 61% increase in the past 24 hours. USDC’s stands around $7.1 billion, up 80% in the past 24 hours.

While Tether contiues to lead the stablecoin space by market share, its market cap has recently suffered as European Union’s Markets in Crypto-Assets regulation came into full effect last December.