Tether, the largest stablecoin issuer these days, as the US increases its pressure on cryptocurrencies, has printed 1 billion USDT tokens on the Ethereum blockchain as part of inventory replenishment.
Stablecoin Issuer Tether Prints 1 Billion USDT On Ethereum To Support Chain Swaps
While some perceive the new USDT issuance as a catalyst for the growing demand for crypto, Tether CTO Paolo Ardoino said that the new USDT tokens are minted to support on-chain swap functions.
“Tether periodically works with different third parties (exchanges, hedge funds, etc.) to help them rebalance their USDT liquidity across different chains,” Ardoino said.
“For example, since exchanges support Tether USDT on multiple chains, they can hold most Tether USDT tokens on one chain, but may need to process withdrawals for another chain.
So such third parties would like to go with a chain swap."
Chain swap refers to the process of transferring tokens from one blockchain network to another. This process allows users to bridge assets across multiple chains.
This is Tether's second billion dollar USDT issuance in less than two months. The stablecoin issuer minted one billion USDT tokens on Ethereum in April.
Minted USDT tokens are held in Tether's treasury and are authorized but not issued and therefore are not part of the overall market value.
Tether remains the largest stablecoin issuer across all blockchains. The current total supply of USDT is over 83 billion Tokens.
*Not investment advice.