Today, Tether has minted an additional 1 billion USDT on the Ethereum network. The development surfaced after a popular blockchain tracking platform known as Whale Alert first provided a hint. The platform revealed that the Tether Treasure minted 1 billion USDT.
Consequently, the Chief Technology Officer (CTO) of Tether, Paolo Ardiono reacted to the revelation by Whale Alert via a tweet. The CTO said, “1 Billion USDT inventory replenish on Ethereum Network.” He went on to illuminate that although the minting was authorized, however, it is not an issued transaction. Paolo Ardiono disclosed that the newly minted tokens will be used as an inventory for the next period of issuance requests and chain swaps.
Backing his submission, the CTO added a blog post to the tweet. According to findings, the blog post provided more insights into how a chain swap works in relation to USDT. Additionally, the blog post explains how a chain swap facilitates the movement of a cryptocurrency across different blockchains. Further, it establishes how traders can enjoy access to other blockchains that support the cryptocurrency in their possession, aiding them to move it across those networks.
The continuous dominance of Tether in the stablecoin space
Lately, Tether is enjoying somewhat of an unchallenged leading position in the stablecoin space. This is due to the wide range of adoption of its USDT. More so, as of June 10, 2023, the USDT has a market capitalization worth $83.38 billion according to Coinmarketcap.
Meanwhile, this extended dominance was partially influenced by the clampdown of the New York Department of Financial Service (NYDFS) on Binance’s BUSD. The BUSD is another stablecoin that has rivaled USDT’s dominance. Recall that on February 13, 2023, the NYDFS ordered Paxos the issuer of BUSD to stop minting the token. This development triggered more influx of funds into USDT which further extended the stablecoin’s dominance.
On the flip side, the crypto industry is enduring somewhat of a hostile regulatory atmosphere in the United States. The undecipherable regulatory stipulations regarding cryptocurrency in the country have generated unwanted controversies, which have compelled some crypto companies to flee the U.S. market. At a point, Tether also has been the subject of regulatory scrutiny in the country.
In the space of last week, the United States Securities and Exchange Commission (SEC) filed different lawsuits against the two top cryptocurrency exchanges, Binance and Coinbase. The regulator alleged the two cryptocurrency exchanges have been offering unregistered securities in the country.