A Twitter post by WhaleAlert, the blockchain analytics and tracking platform, said that Tether has issued an additional one billion USDT on the Tron Network. The post made today, July 12, 2022, said that the company added slightly over a billion to its USDT in circulation.
💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 1,000,000,000 #USDT (1,000,485,000 USD) minted at Tether Treasuryhttps://t.co/Cij1o41kO8
— Whale Alert (@whale_alert) July 12, 2023
Increase in USDT market value
According to Coingecko, over the last 90 days, the market value of USDT increased by $2.6 billion, while USDC’s market value decreased by $4.6 billion. Currently, USDT makes up 65% of the total market value of stablecoins, while USDC accounts for 21.4%. Everyone is keeping an eye on the Federal Reserve this Wednesday.
Paolo Ardoino, Tether’s Chief Technical Officer (CTO), while replying to a tweet by WhaleAlert that announced the new issue, wrote,
“PSA: 1 billion USDt inventory replenishment on the Tron Network. Note that this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period’s issuance requests and chain swaps.”
How USDT swaps work
The blog post he linked explained how the USDT swap works. According to it,
“Let’s say a client on Bitfinex wants to perform a chain swap from the Tron blockchain to the Liquid blockchain. He or she would first deposit their USDt on Tron, within the exchange. The client then simply requests a withdrawal of USDt to the destination blockchain, Liquid. As Bitfinex supports both blockchains, this can be completed on the platform within the exchange.”
When there’s a surplus
There may be cases when another cryptocurrency exchange contacts Tether for swapping its blockchain’s surplus funds with a deficit on another blockchain. The concerned exchange will inform Tether about the initial and destination blockchains for moving the swapped funds.
Once we receive the funds in our treasury wallet on the initial blockchain, we will transfer the same amount to the other exchange on the destination blockchain. The entire procedure of the chain swap is managed and coordinated with the other exchange until the process is complete.
the post said
The post said that if the clients request to swap funds on a blockchain and the amount of USDT they want to exchange exceeds what Tether has in their wallet, Tether will create new USDT and transfer them to complete the swap. Then Tether has two choices: either destroy the same amount of USDT on the first blockchain or keep them in its wallet for future swaps.
