Tether announced that it will be coordinating with a third-party exchange to make a chain exchange as it wants to convert 750 million USDT from Tron to Ethereum ERC20. The total supply of USDT will not change during this process, according to the firm.
A chain exchange process involves moving cryptocurrency from one blockchain to another, allowing merchants to gain access to the various blockchains that support the cryptocurrency they hold. In general, it allows the use of your digital assets on these other supporting blockchains.
1B USDT Mint on Ethereum
He development follows Tether minting a new batch of $1 billion of its USDT on the Ethereum blockchain on Monday. Tether CTO Paolo Ardoino explained on Twitter that the latest $1 billion mint is part of the company’s inventory replenishment on the Ethereum network. The transaction is authorized but “unissued”, which means that this amount will be used as inventory for the next period of issuance requests and chain redemptions.
Tether previously explained,
“Inventory replenishment is the process of creating new USD₮ that is stored in Tether’s treasury inventory as “authorized but unissued” USD₮. These tokens are not part of the total USD₮ market capitalization as they have not yet been issued and put into circulation.”
USDT has positioned itself as a crucial piece of infrastructure in the crypto ecosystem and is widely used to transact on cryptocurrency exchanges. Its issuer, on the other hand, has been the subject of endless scrutiny over its reserve assets and lack of transparency for years.
But this year’s banking sector debacle, as well as increasing repression of the asset class, has caused investors to flee to USDT, significantly increasing its dominance.
Tether’s growing dominance
USDT circulation reached a peak of over $83 billion this week. One of the main factors that have catalyzed the rise is the latest price deviation of rival dollar-denominated stablecoin TrueUSD (TUSD).
Declining investor confidence in the Circle-issued USDC stablecoin is yet another reason that has led market participants to flee to the world’s largest stablecoin, USDT.
Last month, Tether announced the expansion of its presence in Georgia with an investment in a payment processing company called CityPay.io. The company also revealed plans to launch sustainable Bitcoin mining operations in Uruguay.
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