Tether CTO clarifies $1B USDT mint on Ethereum is for chain swaps

Stablecoin issuer Tether minted a caller batch of $1 cardinal worthy of USDT (USDT) on the Ethereum blockchain connected June 12. The latest billion-dollar mint for the stablecoin issuer comes wrong 2 months of its past mint connected April 21.

Tether CTO Paolo Ardoino took to Twitter to clarify that the latest USDT mint is portion of what the steadfast calls “inventory replenish” replenish connected the Ethereum network. The latest issuance, however, won’t interaction the wide marketplace headdress of USDT since the latest minting is an “authorized but not issued transaction.” According to Ardoino, the latest minted magnitude volition beryllium utilized arsenic inventory for the adjacent play of issuance requests and concatenation swaps.

PSA: 1B USDt inventory replenish connected Ethereum Network. Note this is simply a authorized but not issued transaction, meaning that this magnitude volition beryllium utilized arsenic inventory for adjacent play issuance requests and concatenation swaps.https://t.co/Y1bqxZglgR

— Paolo Ardoino (@paoloardoino) June 12, 2023

A concatenation swap is simply a process utilizing which traders tin transportation integer assets from 1 blockchain to another. This process enables traders to summation entree to the galore supporting blockchains for the cryptocurrency they are holding, allowing them to utilize their integer assets connected aggregate supporting blockchains.

Ardoino explained that Tether periodically works with antithetic crypto platforms to assistance them rebalance the USDT liquidity crossed assorted blockchains. For example, if a crypto speech has a surplus of USDT liquidity connected the Ethereum blockchain and a shortage connected the Tron blockchain, wherever it needs to process withdrawals, the speech volition chain-swap its Ethereum-based USDT to the Tron blockchain.

Related: Tether CTO connected USDC depeg: ‘Bitcoin maxis were close each along’ | PBW 2023

Tether has issued a full of implicit $16 cardinal successful caller USDT successful 2023, with its existent marketplace capitalization of much than $83 billion. USDT’s stablecoin marketplace dominance touched caller highs successful 2023 erstwhile different stablecoin issuers struggled owed to regulatory and banking crises successful the United States.

USD-pegged stablecoins by marketplace dominance. Source: CoinGecko.

Circle-issued USD Coin (USDC), the second-largest stablecoin by marketplace cap, was connected the verge of taking implicit USDT arsenic the largest stablecoin successful 2022. However, the prolonged crypto wintertime added to increasing slope runs successful the U.S. brought down USDC proviso importantly successful 2023. Circle CEO Jeremy Allaire blamed the crypto crackdown by the U.S. regulators for the stablecoin’s declining marketplace capitalization.

Tether didn't respond to Cointelegraph's requests for comments astatine property time.

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