Tether Treasury Mints $1 Billion USDT for Inventory Replenishment on Ethereum Network

USDT logo and a coin minting process

Tether Treasury has minted 1,000,000,000 USDT (equivalent to 999,020,000 USD) for inventory replenishment on the Ethereum Network. According to Tether CEO, Paolo Ardoino, this transaction is authorized but not yet issued, indicating that the amount will serve as inventory for future issuance requests and chain swaps.

Not Yet Issued

Tether Treasury has minted 1,000,000,000 USDT (equivalent to 999,020,000 USD) for inventory replenishment on the Ethereum Network. According to Tether CEO, Paolo Ardoino, this transaction is authorized but not yet issued, indicating that the amount will serve as inventory for future issuance requests and chain swaps.

A chain swap, as explained by Tether, is a process that facilitates the movement of cryptocurrencies from one blockchain to another. This allows traders to access various blockchains supporting the cryptocurrency they hold, enabling the utilization of their digital assets across different platforms.

How it Works

For instance, Tether (USDt) operates on multiple blockchains including Omni, Ethereum, Tron, EOSIO, and Liquid. Clients can swap their USDt holdings between these blockchains. The process typically involves depositing USDt on one blockchain within an exchange and then requesting a withdrawal to the destination blockchain.

Clients can perform chain swaps on exchanges supporting both blockchains involved in the swap. For example, a user on Bitfinex can swap USDt from the Tron blockchain to the Liquid blockchain directly within the exchange.

When Imbalances Occur

In some cases, exchanges may approach Tether for chain swap requests due to imbalances in their funds across different blockchains. Tether confirms the initial and destination blockchains for the swap and coordinates the process with the exchange until completion.

Regarding token burns after chain swaps, when Tether mints new USDt tokens for transfers to the destination blockchain, an equivalent amount of tokens may be burned on the initial blockchain or retained in Tether’s treasury wallet for future chain swaps.

Strategic Minting

This strategic minting and burning process helps maintain balance across different blockchains and ensures the efficient operation of Tether’s stablecoin ecosystem.

Overall, the recent USDT minting by Tether Treasury underscores its commitment to providing liquidity and facilitating seamless transactions within the cryptocurrency market.

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Author: Grace

Grace likes gardening. She holds some BTC and ETH.