- Tether has minted another $1B worth of USDT
- 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.
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.
In other news, Tether has been spending part of its profits investing in Bitcoin with green mining plants set up in Uruguay and purchasing Bitcoin Bonds of El Salvador.
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