Tether, the most important stablecoin issuer, has minted 1 billion USDT tokens on the Ethereum blockchain as a part of its “stock replenish.”
Whereas some understand the minting of latest USDT as a catalyst for elevated crypto demand, Tether CTO Paolo Ardoino instructed The Block that new USDT tokens are minted to assist chain swap capabilities.
“Tether periodically works with completely different third events (exchanges, hedge funds, and so forth.) to assist them rebalance the liquidity of their USDT throughout completely different chains,” Ardoino stated. “For instance, since exchanges assist Tether USDT on a number of chains, they may find yourself having most of [their] Tether USDT tokens on one chain (i.e. Tron), however they may must course of withdrawals for one more chain (i.e. Ethereum). Therefore such third events ask to proceed with a series swap.”
Chain swap refers back to the means of transferring tokens from one blockchain community to a different. The method permits customers to bridge property throughout a number of chains.
Tether’s second billion-dollar USDT mint in current weeks
That is Tether’s second billion-dollar USDT mint in lower than two months. The stablecoin issuer minted one billion USDT tokens on Ethereum in April. Minted USDT tokens sit in Tether’s treasury and are “licensed however not issued” and, due to this fact, should not a part of its complete market capitalization.
Tether stays the most important stablecoin issuer on all blockchains in keeping with The Block’s Information Dashboard. USDT’s present complete provide stands at over 83 billion tokens.