Shortly after a Blockchain Tracker, WhaleAlert raised the alarm of a $1 billion USDT authorization on X, Paolo Ardoino responded with some clarifications. Don’t forget that Ardoino is the Chief Technology Officer of Tether. According to him, the fund is intended to be used as an inventory to “replenish the Tron network.
Ardoino clarified that the $1 billion USDT transaction was an authorization and not an issuance. Therefore, the Tether CTO maintained that the allocated amount will be dedicated as inventory for imminent issuance requests and chain swaps on Tron. This is not the first time that the CTO will be coming online to clarify similar authorization.
Recall that in June, he took to X to clarify the essence of the $1 billion USDT minting by his firm. Then, he claimed the move was also an “inventory replenish” for chain swaps on Ethereum. Just like today, the Tether boss described the minting as an authorized but not issued transaction, affirming that the move won’t impact the market cap of the stablecoin.
Notably, chain swap is a technique that enables traders to send their assets from one blockchain to another. With this, traders access compatible networks of their crypto holdings. Ardoino once spoke about how many crypto exchanges find themselves in situations that leave their Tether USDT holdings in one particular chain. Therefore, he added that these firms usually approach Tether to facilitate chain swap, thereby fostering efficient operations. According to the CTO, Tether works with these firms to ensure that they rebalance their USDT liquidity spread across blockchains.
Since 2023, Tether has successfully minted more than $16 billion new USDT. The stablecoin boasts of over $83 million market cap. Around August, the issuer stopped USDT support for Bitcoin Cash SLP, Kusama, and Omni Layer implementations on its network. Then, it said it made the move to protect the interest of its community.
Tether acknowledged Omni Layer’s role in its early journey but emphasized that the network has been facing various challenges in recent years. The issues, according to the stablecoin issuer, has forced many crypto exchanges to consider other transport layers. Therefore, it believes its decision to halt the support for the project remains the best.