Tether CTO clarifies $1B USDT mint on Ethereum is for chain swaps
Tether minted a fresh batch of $1 billion worth of its Tether (USDT) stablecoin on the Ethereum blockchain on June 12. The latest billion-dollar mint for the stablecoin issuer comes within two months of its last mint on April 21.
Tether chief technology officer Paolo Ardoino took to Twitter to clarify that the latest USDT mint is part of what the firm calls an “inventory replenish” on the Ethereum network. The latest issuance, however, won’t impact the overall market cap of USDT since the latest minting is an “authorized but not issued transaction.” According to Ardoino, the latest minted amount will be used as inventory for the next period of issuance requests and chain swaps.
PSA: 1B USDt inventory replenish on Ethereum Network. Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.https://t.co/Y1bqxZglgR
A chain swap is a process traders use to transfer digital assets from one blockchain to another. This procedure allows traders to access other supporting blockchains for the cryptocurrency they hold, letting them utilize their digital assets on multiple blockchains.
Ardoino explained that Tether periodically works with different crypto platforms to help them rebalance the USDT liquidity across various blockchains. For example, if a crypto exchange has a surplus of USDT liquidity on the Ethereum blockchain and a deficit on the Tron blockchain, where it needs to process withdrawals, the exchange will chain-swap its Ethereum-based USDT to the Tron blockchain.
Related: Tether CTO on USDC depeg: ‘Bitcoin maxis were right all along’ | PBW 2023
Tether has issued a total of over $16 billion in new USDT in 2023, with its
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