Tether Moved USD 15M to Liquid for Confidential Transactions On January 7, stablecoin issuer Tether transferred USD 15M from its Ethereum holdings to Blockstream's Liquid network, which is a federated Bitcoin sidechain. The technical feasibility of such a swap was first announced in July 2019.

Tether Moves USD 15M to Liquid Network for Confidential Transactions

On January 7, stablecoin issuer Tether transferred 15 million USDT from its reserves on the Ethereum blockchain to Blockstream's Liquid network, which is a federated Bitcoin sidechain. The technical feasibility of such a swap was first announced in July 2019..

An important difference between Liquid and other blockchains is its support for assets that allow values ​​to be hidden in the public ledger using a "confidential transaction" protocol. By transferring Tether between exchange accounts via Liquid, traders can avoid disclosure of information about their intentions to other market participants.

“Tether transfers are generally traceable. The same applies to transfers to and from exchanges. People obviously use this information in the bidding process. The transition from blockchain, where transactions are carried out transparently, to Liquid is an elementary solution in the context of trading ", - said in a conversation with CoinDesk pseudonymous public relations manager for Blockstream Grubles.

Blockstream CTO Samson Moe noted that Liquid-based Tether may be the first example of a semi-private stablecoin. "Funds tracking services such as Whale Alert do not work with sensitive assets on Liquid," he explained..

At the same time, the issue of Tether in the Blockstream system remains public, which may help dispel the doubts of skeptics..

According to Paolo Ardoino, CTO of Tether, customer interest in confidential transactions led the company to the decision to transfer $ 15 million from the Ethereum network to Liquid: “With confidential transactions, you cannot see the amount transferred from one participant to another. This means that USDT issued on the Liquid network offers better privacy than other chains. ".

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