Tether converts 750 million USDT from Tron to Ethereum

Tether announced that it will coordinate with a third-party exchange to perform an on-chain swap as it seeks to convert 750 million USDT from Tron to Ethereum ERC20. According to the firm, the total supply of USDT will not change during this process.

A chain swap process involves transferring cryptocurrencies from one blockchain to another, which enables traders to gain access to different blockchains that support the cryptocurrencies they hold. In general, this allows the use of their digital assets on these other subsidiary blockchains.

1B USDT Mint on Ethereum

Development Tether on Monday mined a new batch of $1 billion of its USDT on the Ethereum blockchain. Paolo Ardoino, Tether’s CTO Explained on Twitter that the latest billion-dollar mint is part of the company’s inventory replenishment on the Ethereum network. The transaction is authorized but “not issued”, which means that this amount will be used for the issuance request and as inventory for the next period of the chain swap.

Tether previously explained,

“Inventory replenishment is the process of creating new USD₮ that are stored in Tether’s treasury inventory as “authorized but not issued” USD₮. These tokens are not part of the total market capitalization of USD₮, as they have not yet Not issued or put into circulation.

USDT has positioned itself as an important part of the infrastructure of the crypto ecosystem and is widely used to trade on cryptocurrency exchanges. Its issuers, on the other hand, have been at the receiving end of endless scrutiny for their reserve assets and lack of transparency over the years.

But this year’s banking sector debacle, as well as a growing crackdown on the asset class, has resulted in investors flocking to USDT, which has significantly increased its dominance.

Tether’s growing dominance

USDT circulation peaked at over $83 billion this week. One of the key factors catalysing the surge is the latest price divergence of rival dollar-denominated stablecoin TrueUSD (TUSD).

Shrinking investor confidence in the USDC stablecoin issued by partner Circle is yet another reason why market participants are migrating to the world’s largest stablecoin, USDT.

Last month, Tether announced the expansion of its footprint in Georgia with an investment in a payment processing company called Citypay.io. The company also revealed plans to launch a sustainable bitcoin mining operation in Uruguay.