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- Tether has finalized its second $1 billion issuance in a span of two months, totaling over $16 billion for 2023.
- The latest issuance on the Ethereum blockchain is classified as “replenishment” and will not affect USDT‘s market capitalization.
- Chain swapping is essential for Tether to sustain balanced USDT liquidity across various blockchains.
Tether, a leading stablecoin issuer, has recently accomplished its second $1 billion issuance within two months, elevating the total issued in 2023 to over $16 billion. This transaction took place on June 12, utilizing the Ethereum blockchain.
Paolo Ardoino, Tether’s Chief Technology Officer (CTO), took to Twitter to explain that this recent issuance is categorized as “replenishment” on the Ethereum network. Ardoino highlighted that this issuance would not alter USDT’s total market capitalization, representing an “authorized but not issued” transaction. The newly created funds will act as reserves for upcoming issuance requests and chain swaps.
In a few minutes, Tether will coordinate with a third-party exchange to execute a chain swap, converting from Tron to Ethereum ERC20, for 750M $USDt.
The #tether $USDt total supply will remain unchanged during this process.
Learn more about chain swaps https://t.co/abfgnELSvi— Tether (@Tether_to) June 12, 2023
Chain swapping, a method that allows the transfer of digital assets across different blockchains, is crucial to Tether’s operations. The company partners with various cryptocurrency platforms to ensure balanced USDT liquidity across blockchains. Through chain swaps, exchanges can efficiently move surplus USDT from one blockchain to another, addressing liquidity shortages and enabling withdrawals.
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Tether’s Growth Reinforces Stablecoin Supremacy
In 2023, Tether has introduced over 16 billion new USDT tokens, resulting in a market capitalization that exceeds $83 billion. The stablecoin’s market dominance has reached unprecedented levels this year, while other stablecoin issuers have faced regulatory and banking hurdles in the United States.
The market capitalization of USDC, the second-largest stablecoin, nearly surpassed that of USDT in 2022. However, due to the extended crypto winter and banking issues, market confidence in USDC has considerably diminished in 2023. Circle’s CEO, Jeremy Allaire, attributed this decline to increasing pressure from US regulators on the cryptocurrency industry.
Tether’s ongoing issuance and growth in market capitalization highlight its resilience and adaptability in the constantly changing cryptocurrency environment. By effectively managing liquidity and actively collaborating with various blockchains, Tether guarantees a smooth experience for traders and exchanges, solidifying its status as a prominent stablecoin provider.
As the year advances, industry watchers are keenly awaiting further developments in the stablecoin sector as it continues to influence the broader cryptocurrency ecosystem.
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