After recent developments in the stablecoins market, Tether (USDT) disclosed details of its decision to coordinate a chain swap to move USDT assets from Tron’s TRC-20 to Ether and Avalanche’s blockchain. 

Specifically, Tether reportedly took to Twitter to reveal that 1 billion USDT will be transferred from Tron’s blockchain to Ethereum. On the other hand, the conversion of an extra 20 million USDT to Avalanche will be carried out. 

Per Tether, this will not have any changes on the overall supply of the stablecoin.

The decision was reportedly made during the time fears are spreading of a stablecoin meltdown, following the recent TerraUSD (UST) and Terra (LUNA) debacle. 

Besides this, USDT further displayed price fluctuations, slumping under the $0.99 benchmark on numerous exchange platforms. Consequently, many expressed concerns over the most-traded stablecoin showing signs of struggle.

Nonetheless, Tether’s chief technology officer Paolo Ardoino reportedly offered reassurance to traders, claiming that USDT bears no resemblances to algorithmic stablecoins like UST. 

Per Ardoino, Tether reportedly possesses a “strong, conservative and liquid portfolio that consists of cash and cash equivalents.” This includes treasury bills, money market funds, and commercial paper holdings.

Ardoino further pointed out that the current level of fear, uncertainty, or doubt (FUD), associating with stablecoins is turning into an opportunity for some traders to capitalize. 

According to his explanations, a few companies are purchasing USDT under the $1 benchmark on numerous exchanges and are redeeming it for above $1 on Bitfinex and the Tether website.