Tether has minted $2 billion in USDT on the Ethereum network while injecting millions of the stablecoin into top-ranking exchanges.
Bullish momentum further engulfed the crypto market as Whale Alert pointed to a positive move by leading stablecoin issuer Tether. The company just minted $2 billion on the Ethereum network, a few days after minting $1 billion on the Tron blockchain.
However, Tether CEO Paolo Ardoino clarified sentiments around the latest development, noting it is different from its normal USDT deployment activities. Ardoino referenced a tweet from Tether’s official handle explaining what the stablecoin issuer aims to achieve with the Wednesday USDT mint on the Ethereum network.
Tether Redeploys USDT to Ethereum
Per Tether’s tweet, the firm partnered with a top-tier crypto exchange to conduct a USDT chain swap. This on-chain activity involves the exchange transferring surplus USDT on a network to Tether’s Treasury wallet, and the issuer, in turn, mints the received amount on a new blockchain.
The chain swap activity will not increase Tether’s total USDT supply, as the received tokens are burned. Meanwhile, the reallocation would offset the amount of the stablecoin in circulation on each of the involved blockchains.
Tether noted that it intends to shift its surplus USDT stash on some chains to the Ethereum network, where it is in high demand. The firm partnered with an exchange to move 1B USDT from Tron, 600 million USDT from Avalanche, 300 million USDT from the Near Protocol, 75 million USDT from CELO, and 60 million USDT from the EOS Network.
Meanwhile, the Tron network remains the chain holding the largest amount of USDT in circulation despite the 1 billion USDT reallocation. Tether’s transparency page shows the chain has $61.2 billion USDT in circulation, while the Ethereum network holds $56.2 billion.
Tether Injects $1.85B USDT Into Exchanges
Following the chain swap, Tether injected 1.85 billion USDT on the Ethereum network. Data shows that the leading issuer moved 1.7 billion USDT to Binance, $101.7 million to Coinbase, 20 million USDT to OKX, and $17.86 million to Kraken.
Notably, the surging interest and trading activities on exchanges may have prompted the fund injection. USDT’s trading volume stands at $129 billion, more than 100% of its $121 billion circulating supply, indicating growing usage of the stablecoin.
Meanwhile, the asset’s expanding importance in the crypto sector saw it record an impressive $2.5 billion in profits for Q3 2024. The attestation report shows the leading issuer has made an unprecedented $7.7 billion in the year’s first three quarters.
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