Tether announced USDT migration tool to protect against blockchain network failures.
Tether, a major stablecoin issuer, has launched a recovery tool designed to migrate USDT stablecoin to various blockchains.
According to a March 4 announcement, the tool aims to secure ongoing access to the Tether stablecoin (USDT) in the event of potential outages across multiple blockchain networks in operation.
Based on Tether, USDT’s architecture is independent of any specific blockchain and only serves as a means of transport. This design philosophy allows it to exist on approximately 15 blockchains, including Bitcoin, Ethereum, Polygon, Solana, Tron, and Tezos.
However, network outages are becoming increasingly common in the cryptocurrency sector due to increased load. Recent network outages, such as a five-hour outage on the Solana Layer 1 network and notable downtime on the Polygon network, have highlighted growing concerns about network reliability in the expanding cryptocurrency sector. These incidents highlight the critical need for mechanisms such as Tether’s blockchain recovery tool.
This new tool serves as a preventive measure to address these outages. The main goal is to ensure uninterrupted availability of USDT. This allows USDT to be seamlessly migrated between blockchains in case of compromise. Affected users can therefore verify USDT ownership on the compromised blockchain and initiate asset transfers by specifying recipient addresses on supported alternative networks.
Tether has designed this process to be intuitive, supporting web and command line interfaces. The system accommodates popular browser extension wallets such as MetaMask and hardware wallets such as Ledger or Trezor, providing a strong security framework. Additionally, for users who prefer to work with their private keys directly, a command line interface is provided, ensuring a comprehensive suite of options to protect your assets.
This announcement follows USDT’s significant achievement of reaching a market capitalization of $100 billion for the first time on March 4th. USDT also leads the cryptocurrency market in daily trading volume, with daily trading volume using USDT reaching $132 billion as of March. 5. This surpasses the trading volume of other major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), which have daily trading volumes of $82 billion and $33 billion, respectively.
Additionally, Tether reported a net profit in the fourth quarter of 2023 while USDT’s excess reserves increased significantly, reaching an all-time high. The fourth-quarter proof showed that the stablecoin operator achieved a net profit of $2.8 billion, mainly due to price. An appreciation of Bitcoin (BTC) and gold reserves.