Tether mints 1 billion of USDT on Ethereum to support chain swaps
Blockchain
Tether, the biggest 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 advised The Block that new USDT tokens are minted to help chain swap features.
“Tether periodically works with totally different third events (exchanges, hedge funds, and so forth.) to assist them rebalance the liquidity of their USDT throughout totally different chains,” Ardoino stated. “For instance, since exchanges help 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 have to 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 strategy 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 latest 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 “approved however not issued” and, due to this fact, aren’t a part of its whole market capitalization.
Tether stays the biggest stablecoin issuer on all blockchains based on The Block’s Knowledge Dashboard. USDT’s present whole provide stands at over 83 billion tokens.
