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Tether CTO clarifies $1B USDT mint on Ethereum is for chain swaps

Tether CTO clarifies $1B USDT mint on Ethereum is for chain swaps

Tether, the stablecoin issuer, has minted $1 billion worth of Tether (USDT) on the Ethereum blockchain as part of an “inventory replenish” on June 12. Paolo Ardoino, Tether’s CTO, clarified on Twitter that the latest mint is an “authorized but not issued transaction” and won’t affect USDT’s market cap. The newly minted USDT will be used as inventory for the next period of issuance requests and chain swaps. Tether has minted over $16 billion of new USDT this year, with a market capitalization of over $83 billion.

Chain swapping is a process in which traders transfer digital assets from one blockchain to another, and Tether periodically works with different crypto platforms to help rebalance USDT liquidity across various blockchains. USDT’s market dominance has surpassed other stablecoin issuers as they face regulatory and banking crises in the United States. The Circle-issued USD Coin (USDC), the second-largest stablecoin by market cap, was on the verge of overtaking USDT, but the prolonged crypto winter and banking contagion in the U.S. significantly affected USDC’s market confidence in 2023. Tether did not respond to Cointelegraph’s comment request by publication.

U.S. dollar-pegged stablecoins by market dominance. Source: CoinGecko.

Related: Tether CTO on USDC depeg: ‘Bitcoin maxis were right all along’ | PBW 2023

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