Tether’s Treasury Transfers $750 Million USDT to Binance in Massive Chain Swap
In a significant development within the cryptocurrency world, Tether’s treasury has transferred a staggering $750 million USDT to Binance, as revealed by blockchain analytical firm Arkham Intelligence. This transaction, carried out in three batches of $250 million each, follows a $10 test transaction that preceded it.
Earlier today, Binance, one of the leading cryptocurrency exchanges, announced its intention to swap 750 million USDT-TRX for USDT-ETH directly with Tether. This strategic move aims to ensure stablecoin liquidity across all chains, demonstrating Tether’s commitment to providing a seamless experience for users across different blockchain networks.
Paolo Ardoino, Tether’s Chief Technology Officer (CTO), had previously shared on Twitter that the stablecoin issuer planned to mint 1 billion USDT tokens to replenish its inventory on the Ethereum blockchain.
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
The accuracy of these reports was confirmed by Arkham Intelligence, which highlighted that this was Tether’s first instance of minting on Ethereum since late April. Remarkably, Arkham noted that just 12 hours prior, the stablecoin issuer held a mere $146 million USDT on the Ethereum blockchain. This recent move demonstrates Tether’s intention to bolster its presence on Ethereum and maintain adequate inventory levels.
Regarding the transaction, Ardoino clarified that the $1 billion USDT inventory replenishment on the Ethereum Network was an authorized but not yet issued transaction. This means that the amount will serve as inventory for future issuance requests and chain swaps. Chain swaps, as explained on Tether’s website, involve the transfer of cryptocurrencies from one blockchain to another, typically initiated at the request of an exchange experiencing a surplus on one blockchain and a deficit on another.
Despite the recent developments, Tether continues to maintain its dominant position as the leading stablecoin within the cryptocurrency industry. With a market capitalization of $83.38 billion and a 24-hour trading volume of $20.89 billion, according to Coingecko’s data, Tether remains a preferred choice for traders and users seeking stability within the volatile crypto market.
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