Tether mints 1 billion dollars in USDT on the Tron network

Tether has recently minted 1 billion dollars in USDT on the Tron network, bringing the total tokens issued in the last year to 33 billion

Stablecoin issuer Tether has recently minted 1 billion dollars in USDT on the Tron network, bringing the total tokens issued in the last year to 33 billion, according to data revealed by the on-chain analysis platform Lookonchain.

The new minting is aimed at meeting the growing demand for USDT on Tron, which now holds 37.9% of the total stablecoin market share.

The latest development comes amid an increasing demand for USDT on the Tron blockchain, which is now the second largest chain by stablecoin market share.

According to data from Coin Metrics on August 16, Tron now boasts over 61 billion dollars in stablecoins present on its network.

This impressive growth in Tron’s stablecoin market share is likely due to several factors, including the speed of transactions, the low fees, and the growing adoption by users.

As the demand for USDT on Tron continues to rise, Tether is likely responding by minting more of the stablecoin on the network.

On August 19, the Transparency page of Tether indicated that the Tether treasury had only 36 million dollars in USDT on Tron “authorized but not issued”, which could be signaling a possible shortage of USDT on this blockchain.

Moreover, the recent minting also aligns with Tether’s strategies for replenishing stocks and managing liquidity, as described by the CEO of Tether, Paolo Ardoino, in a previous report.

According to Ardoino, when a chain requests a large minting of USDT, such as 1 billion, it is a “stock replenishment”, which is carried out to ensure smooth liquidity management.

“When you see a billion minted, it’s a stock replenishment. We get a chain that requests a large minting (e.g., 1 billion), and we perform the minting. This ensures smooth liquidity management,” said Ardoino.

In essence, Tether mints new USDT tokens in a manner similar to how traditional companies replenish their inventories to meet demand.

This process ensures that there is a sufficient supply ready for future issuance requests and chain swaps. Importantly, these tokens are not immediately put into circulation. Instead, they remain available in Tether’s treasury wallet until it becomes necessary to distribute them.

This approach allows Tether to maintain efficient liquidity management, ensuring that the stablecoin is always available in adequate quantities to meet the market demand.

Furthermore, this methodology helps to prevent sudden fluctuations in the value of USDT, contributing to the stability of the cryptocurrency market.