Tether, a major stablecoin issuer and one of the leading players in the crypto market, has introduced a recovery tool to facilitate the seamless migration of its Tether (USDT) stablecoin between different blockchains.
On March 4, Tether announced the launch of its blockchain recovery plan, aimed at ensuring uninterrupted access to USDT in the event of disruptions faced by any of the multiple blockchain networks utilized for USDT transactions.
As of that date, Tether reported that USDT is present on 14 different blockchains, including Tron, Ethereum, Solana, Avalanche, and Omni.
Among these, Tron and Ethereum are the two largest blockchains for USDT, accounting for 51% and 43% of all issued USDT, respectively.
Tether noted that USDT exists independently of any specific blockchain and that the blockchains are solely used as a transport layer.
Recovery Tool to Mitigate Blockchain Responsiveness Risks
Tether’s recovery tool is intended to help mitigate risks associated with potential blockchain unresponsiveness.
This tool allows users to migrate their USDT holdings between blockchains securely.
Tether explained the process, stating that users can verify ownership of their addresses on an unresponsive blockchain and then indicate a recipient address on another supported blockchain.
Tether will then facilitate the transfer of USDT between the two addresses.
The migration process can be initiated by affected USDT users through a web interface or command-line tools.
Users will need to cryptographically sign a migration request to verify their ownership of Tether tokens, which can be done using browser extension wallets like MetaMask or hardware wallets such as Ledger or Trezor.
Additionally, Tether provides a command-line interface that allows users to input their private key directly, enabling them to sign the required message using an open-source script on their local machine.
Tether Surpasses $100 Billion Market Cap
The launch of Tether’s recovery tool comes as the stablecoin’s market capitalization has surpassed $100 billion for the first time in its history.
As of now, USDT holds the third-largest position in terms of market capitalization among cryptocurrencies, following Bitcoin and Ether, which are valued at $1.4 trillion and $442 billion, respectively.
Comparatively, USDT maintains a lead of over $71 billion in market cap when compared to its closest competitor, USD Coin (USDC), which is issued by Circle and has also experienced growth this year.
USDT also boasts the highest daily trading volume among cryptocurrencies, with $132 billion in transactions conducted daily as of March 5. BTC and ETH follow USDT in terms of trading volumes, with $82 billion and $33 billion in daily transactions, respectively.
“Surpassing the $100 billion market cap is not just a numerical achievement; it’s a testament to Tether’s pivotal role in reshaping the landscape of digital finance,” Paolo Ardoino, Tether’s CEO, said in a comment to Cryptonews.com.
Source : Cryptonews / Mar 5, 2024