Binance plans to swap 750 million of token pairs to ensure liquidity
Technology
Tether is the largest stablecoin that aims to maintain a 1:1 peg with the U.S. dollar
(Reuters) - Binance said in a tweet it would swap 750 million tether-tron token pairs for tether-ether in an attempt to maintain the stablecoin's liquidity.
The move comes amid renewed regulatory scrutiny at the world's largest cryptocurrency exchange and will help cushion some of the fallout from recent blows, including Binance being sued by the U.S. Securities and Exchange Commission.
The swap, set to start after 12 p.m. UTC on Monday, will be held directly with the tether team, the tweet said.
After 12pm UTC today, #Binance will be swapping 750M USDT-TRX for USDT-ETH directly with the Tether team to ensure stablecoin liquidity across all chains for our users.
— Binance (@binance) June 12, 2023
If you see any significant movements of USDT from our wallets today, that's why.
Funds are SAFU.
Tether is the largest stablecoin that aims to maintain a 1:1 peg with the U.S. dollar. Tron is the ninth largest cryptocurrency with a $6.3 billion market value, while ether is the largest after bitcoin, with its $210 billion market capitalization.
Last week, the SEC sued Binance, its CEO and founder Changpeng Zhao, and Binance.US's operation alleging in 13 charges that Binance had engaged in a "web of deception," artificially inflated trading volumes and diverted customer funds, and that Binance and Zhao were secretly controlling the U.S. entity while publicly claiming that it was independent.
It will also halt dollar withdrawal channels as early as June 13 after the SEC asked a court to freeze its assets. Binance said on Thursday.
Trading platform Robinhood Markets said the next day that it was delisting three cryptocurrency tokens from its platform that the SEC identified as securities in its lawsuit against Binance.
The SEC charged the Tron Foundation and its founder Justin Sun with fraud in March. A month later the U.S. arm of Binance said it would remove digital asset token tron from its trading platform.
