Tether has minted another billion USDT coins on Tron Network to satisfy chain swap demands.
USDT has increased its market value by $2.6 billion in 90 days, while USDC lost its market value by $4.6 billion
USDT now has a stablecoin market dominance of 65%
As demand rises, Tether USDT has increased its market value by $2.6 billion. As a result, Tether has minted 1 billion more coins on Tron Network to satisfy the blockchain’s USDT chain swap demands.
Tether USDT market value rises by $2.6B in 90 days, achieving a 65% market dominance
The minted amount will be spent as inventory for the next period of issuance requests and chain swaps on the Tron Network. A chain swap is a process where traders transfer assets from one blockchain to another. For instance, you can swap USDT from Tron Network to BNB Chain network.
This development comes as Tether USDT gains more stablecoin market dominance to 65% while the second largest stablecoin by market cap is losing its demand. Tether’s USDT gained $2.6B in market cap over the past 90 days, while Circle’s USDC lost $4.6 B in the same period.
In the news, Tether is also increasing its footprint in crypto investments. As such, it’s setting up its USDT coin for adoption even more. However, it still hasn’t received total trust from the crypto industry following a series of crypto collapses less than a year ago.
A Tether USDT de-peg has sent a shockwave across the crypto market as Curve 3Pool seems to be in distress.
USDT’s value plummeted to slightly under a dollar, but issuing company, Tether, says it is ready to buy back any amount while it works on restoring the peg
Tether’s USDT traded on a discount of up to 0.25% on June 15, 2023, due to imbalances in Curve 3Pool. Curve 3Pool is one of the most popular pools for stablecoin trading in decentralized finance. Therefore, a miscalculation or imbalance of reserves can affect its stablecoins.
Tether is ready to buy back any USDT amounts to restore the peg
Tether Chief Technology Officer (CTO), Paolo Ardoino, has talked about the dip, saying that the imbalance in Curve 3Pool indicates a broader tension in the crypto market. In an interview with The Block, he expressed that Tether is a liquidity gateway in the crypto industry; when bull markets set in, they see inflows, and when a bear cycle occurs, outflows increase.
“Tether is the gateway for liquidity, inbound and outbound. So when the interest in crypto grows, we see inflows; when the sentiment on the crypto market is negative, we see outflows.”
It is not the first time that Curve 3Pool has had an imbalance. In March 2023, the pool had a similar issue where the balances of DAI and USDC stablecoins exceeded 45% of each. Also, in November 2022, after the collapse of FTX, the volatility in the pool was highly noticeable same as the Terra ecosystem collapse.
Despite the current situation looking ugly for a struggling market, Ardoino has said that the company is closely monitoring the situation and will have a remedy sooner than later. Keep watching Fintech Express for more updates on crypto and other fintech-related news and developments.
Tether CTO says that the money is necessary to facilitate chain swaps
The new 1B USDT coins take the total tally of the coins minted by Tether in 2023 to over $16B
Tether CTO says the newly minted $1B is for chain swaps
Tether CTO Paolo Ardoino has taken to Twitter to clarify why the issuer has minted a billion USDT. He says the new coins will facilitate chain swaps and won’t mix with the issued market cap.
Tether CTO Paolo Arddoin said that the amount is authorized but not issued. Therefore, the amount will be spent as an inventory for the next period of issuance requests and chain swaps.
PSA: 1B USDt inventory replenish on Ethereum Network. Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.https://t.co/Y1bqxZglgR
A chain swap is a process where traders can transfer digital assets from one blockchain to another. For instance, you can swap USDT on the Ethereum network to Binance or Tron networks. This trader allows investors to access perks from different networks supporting the coins they hold.
Regarding the development, Tether CTO Ardoino explained that the company periodically works alongside different crypto platforms to help rebalance the liquidity of USDT across various blockchains. For instance, a platform could see a growing demand for USDT on the Tron network than the Ethereum network, necessitating a rebalance of the available USDT balances to serve the clients right.
By now, Tether has minted over $16B in 2023. It remains the world’s largest stablecoin and is pegged to the dollar. The stablecoin also brags a market capitalization of $83B, which takes its dominance out of reach of many crypto assets.
Stablecoin company, Tether, said on May 20, 2023, that it would commit its resources to mining Bitcoin in Uruguay using renewable energy.
As Bitcoin halvings increase, Bitcoin’s mining hash rate is rising, necessitating more innovative ways of accessing electrical power as concerns are rising due to its high consumption levels.
Stablecoin Company Tether is shifting toward diversifying its treasury management strategy by investing some of its net profit in Bitcoin.
Tether to do more than minting USDT; Bitcoin in mind
Tether, the world’s largest stablecoin company, has revealed that it seeks to diversify its treasury investment strategy by investing part of its profits in Bitcoin. The company is now moving to mine Bitcoin in Uruguay using renewable energy.
The company revealed this plan on May 30, 2023, marking its first foray into the green energy sector. It added that it is also searching for experts in the new venture to support its expansion in the green energy space. Bitcoin’s rising hashing figures require even more energy to secure the network and mint new coins, which necessitates the innovation of more solutions like green energy.
“By harnessing the power of Bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining,” said Paolo Ardoino, CTO of Tether.
“Our unwavering commitment to renewable energy ensures that every Bitcoin we mine leaves a minimal ecological footprint while upholding the security and integrity of the Bitcoin network.”
In early May 2023, Tether revealed that it plans to invest some of its profits in Bitcoin. The company committed to investing up to 15% of its net profit in Bitcoin, mimicking strategies from other international companies like Elon Musk’s Tesla and Michael Saylor’s Microstrategy.
Tether is now eyeing to establish its Bitcoin mining plants in Uruguay, one of the prominent leaders in renewable energy production, sourcing over 98% of its electricity output from green energy sources. This development creates a positive image for the company and Bitcoin, as influential people in the crypto industry have asked crypto miners to consider energy sources with lower carbon prints.
Keep watching Fintech Express for updates on crypto and other Fintech-related stories.
Binance.US has scored another win after securing a partnership with MoonPay after having its US bank ties severed.
The exchange was on the spot after a lawsuit from the US SEC, prompting the banks to draw away from it as preventive measures.
Binance.US has scored another win after partnering with MoonPay to restore USD deposits and withdraws. The platform had lost its USD ramps due to the US SEC lawsuit.
Relief for Binance.US as it lands a new banking ramp
Binance.US had abandoned its USD banking partners after the US SEC pressed charges against it. As a result, it was forced to suspend all USD withdraws and deposits; however, customers could still switch their USD balances to other currencies and withdraw them.
The platform is now operating as a crypto-only trading exchange despite being on a legal tuff with regulators in the country. It has announced a new partnership with MoonPay to allow its users to buy USD-pegged Tether USDT stablecoin that can be used on its platform for trading purposes.
It announced on August 22 that USDT is selected as the base asset for all transactions between it and MoonPay, creating a path for trading using USD.
Today, we're excited to introduce a new $USD on-ramp!
