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 recent USDT as a catalyst for elevated crypto demand, Tether CTO Paolo Ardoino informed The Block that new USDT tokens are minted to help chain swap features.
“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 mentioned. “For instance, since exchanges help Tether USDT on a number of chains, they could find yourself having most of [their] Tether USDT tokens on one chain (i.e. Tron), however they could have to course of withdrawals for an additional chain (i.e. Ethereum). Therefore such third events ask to proceed with a sequence swap.”
Chain swap refers back to the technique of transferring tokens from one blockchain community to a different. The method permits customers to bridge belongings 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 “approved however not issued” and, subsequently, will not be a part of its complete market capitalization.
Tether stays the biggest stablecoin issuer on all blockchains in line with The Block’s Information Dashboard. USDT’s present complete provide stands at over 83 billion tokens.
