Tether CTO says $1b USDT minted on Ethereum reserved for chain swapping

Tether recently minted another $1 billion worth of its Tether USDT stablecoin on the Ethereum blockchain, which is another big issuance within two months since its last minting on April 21.

In a June 12 tweet, Paul Ardoino took to Twitter to clarify that it is part of regular inventory replenishment.

Recent issuance

Tether, the stablecoin issuer, recently minted a fresh batch of $1 billion worth of its Tether USDT stablecoin on the Ethereum blockchain on June 12, following a minting just two months prior on April 21.

In response to concerns, Tether’s chief technology officer (CTO) Paolo Ardoino took to Twitter to provide clarification, explaining that the latest USDT mint is part of their regular “inventory replenish” process on the Ethereum network.

Ardoino emphasized that this recent issuance will not impact the overall market cap of USDT, as it is categorized as an “authorized but not issued transaction.” The minted amount will serve as inventory to fulfill future issuance requests and facilitate chain swaps, ensuring a steady supply for upcoming transactions.

According to the Tether article, the CTO links in his tweet, in certain cases, Tether may receive requests from cryptocurrency exchanges for chain swaps, typically when the exchange possesses an excess of funds on one blockchain but lacks sufficient funds on another.

To facilitate the chain swap, the exchange will communicate with Tether, specifying the initial and destination blockchains involved in the transfer.

Upon verifying the receipt of the funds in Tether’s treasury wallet on the initial blockchain, an equivalent amount of funds will be sent to the destination blockchain, effectively completing the chain swap process. 

Bull coming back?

Paul’s tweet resulted in a variety of responses from the Twitter community, with many hinting towards the start of a new bullish trend.

This tweet comes following a period of cryptocurrency prices facing a decline. As a result, market participants have followed historical actions and are now looking to the stability of stablecoins to protect their assets until market conditions improve.

In this context, Tether (USDT), a widely recognized stablecoin, has emerged as a favored choice. During the first week of June, USDT achieved a new milestone, with its market capitalization surging to $83.6 billion, surpassing its previous record of $83.2 billion and reaching a new all-time high.