Stablecoin issuer Tether has authorized 1 billion USDT to be issued for the purpose of “resupplying” to support the exchange of the token on various blockchains.
PSA: 1B USDt inventory replenish on Ethereum Network. Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.https://t.co/Y1bqxZglgR
— Paolo Ardoino 🍐 (@paoloardoino) June 12, 2023
This is the second such tranche for such a large amount. The first one was in April.
“Tether periodically works with various third parties (exchanges, hedge funds, etc.) to help them balance USDT liquidity across various networks», Tether CTO Paolo Ardoino explained.
According to him, platforms may face a situation where most of the USDT will be on one blockchain, but they will need to process withdrawals on another. For such cases, a cross-chain swap may be required.
Issued stablecoins remain in the Tether treasury in an “authorized but not issued” status. They do not participate in the calculation of capitalization.
Recall that in May 2023, Ardoino said that Tether is considering new lines of business due to high profitability.
In early June, the total market value of USDT hit a record high of $83.4 billion.
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