Stablecoin issuer Tether has minted another 1 billion USDT tokens on the Tron network, bringing the total USDT minted last year to $33 billion.
On August 20, blockchain data showed that Tether minted $1 billion of Tether (USDT) tokens on the Tron network and transferred them to treasury wallets. According to on-chain analytics platform Lookonchain, “Tether Treasury” wallets minted $33 billion in stablecoin tokens last year.
Tether will mint 1 billion USDT tokens on Tron. Source: TronScan
According to the data platform, 19 billion USDT tokens were minted on the Tron network and 14 billion tokens were created on the Ethereum blockchain.
Tether replenishes stablecoin inventory
Tether’s 1 billion mint on Tron follows the mint of another token of the same value on Ethereum. On August 13, data tracking platform Whale Alert flagged a transaction indicating that the stablecoin issuer added an additional $1 billion to Ethereum.
Tether CEO Paolo Ardoino told X that the $1 billion transaction was simply a “USDT inventory replenishment” on Ethereum. The executive said the transaction was approved but not issued, meaning it will be used as inventory for the issuing company’s next issuance request and Chainswap.
In a traditional business, replenishing inventory requires ordering inventory to meet demand. Similarly, Tether may create USDT to maintain sufficient supply and hold it until it is officially issued. This ensures smooth liquidity management without being immediately released into circulation.
Cointelegraph reached out to Tether for comment, but did not immediately receive a response.
Related: Tether extends USDT to Aptos blockchain to reduce fees
Tether has not made any public statements regarding the new 1 billion token on Tron, but it likely has the same purpose as the recently minted USDT token on Ethereum.
According to Tether’s transparency page, the stablecoin issuer had only $36 million in USDT tokens on Tron in its treasury as of August 19th, “licensed but not issued.” This means Tether may be running out of USDT on the Tron network, highlighting its strong financial strength. Demand for stablecoins in Tron.
Tron currently leads the stablecoin supply market. On August 16, Coinmetrics data showed that the network accounts for 37.9% of the total stablecoin market, with over $61 billion of stablecoins in the blockchain.
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