Tether Releases Second Tranche of $1bln USDT on Ethereum blockchain
On Monday, Tether, the primary issuer of stablecoins, released an additional $1 billion worth of USDT on the Ethereum network. In a tweet, Paolo Ardoino, who holds the position of Chief Technology Officer (CTO) at the issuer, confirmed the minting process and specified that it was carried out for the purpose of inventory replenishment and chain exchange.
A replenishment of 1 billion USDT has been made to the inventory on the Ethereum Network. According to Ardoino, this transaction is authorized but not yet issued. This implies that the specified quantity will be utilized as inventory for the upcoming period’s issuance requests and chain swaps.
Ardoino provided additional clarification that Tether collaborates with multiple exchanges and hedge fund institutions to restore their USDT liquidity from alternate chains. The CTO of Tether presented an example of a withdrawal between Tron and Ethereum, highlighting that these networks regularly require USDT replenishment for chain exchange objectives.
In essence, chain swapping refers to the act of moving digital currency from one blockchain to a different one. This particular process facilitates user access to diverse channels, subject to the network’s support for the relevant token.
For the second time in a span of two months, Tether has released $1 billion worth of USDT on the Ethereum network. The issuer of the stablecoin produced an equivalent quantity of units in April due to the purpose of “inventory replenishment.”
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
— Paolo Ardoino 🍐 (@paoloardoino) June 12, 2023
There are those who hold the belief that the act of minting is a consequence of an increase in demand for cryptocurrency. Nonetheless, the cryptocurrency market continues to remain inert as investors exhibit hesitancy following the recent legal action taken against prominent exchanges, namely Binance and Coinbase.
The stablecoin with the highest demand is USDT from Tether, which has a circulating supply exceeding 83 billion. The total supply of Circle’s USDC is approximately 60 billion less than that of USDT, placing it in the second position in the hierarchy. Despite the fact that USDC has its entire supply on the blockchain, Tether continues to dominate the Ethereum network.