YEREVAN (CoinChapter.com) — Tether minted $1 billion USDT on the Tron blockchain, reinforcing its efforts to meet the growing stablecoin demand. This issuance follows a similar large-scale minting on Ethereum earlier this year. The mint was transferred to Tether’s treasury wallet to ensure supply readiness.
Tether Mints $1B USDT on Ethereum. Source: Lookonchain
This addition marks a notable year for Tether, with $33 billion USDT minted in total over 12 months. The company minted a record-breaking $16 billion USDT in August alone, underlining the demand for stablecoins across DeFi liquidity and crypto trading platforms.
Tron Blockchain Leads Stablecoin Issuance in 2024
Tether’s reliance on Tron has grown significantly, with the blockchain facilitating the minting of 19 billion USDT in the past year. In comparison, Ethereum accounted for 14 billion USDT. The preference for Tron stems from its lower transaction costs and higher scalability, which make it a suitable network for stablecoin demand.
Tron currently holds a dominant 37.9% market share in the stablecoin market, surpassing Ethereum. Furthermore, the blockchain supports over $61 billion in stablecoins, highlighting its significance in the digital asset landscape. Consequently, Tether’s decision to mint additional USDT on Tron underscores its strategy to enhance liquidity and ensure seamless transactions on this rapidly expanding platform.
Tether Treasury Wallet Ensures Liquidity Management
Tether directed the $1 billion USDT minted on Tron to its treasury wallet. This action helps Tether manage inventory efficiently and prepare for issuance requests and chain swaps. By taking this step, Tether ensures liquidity remains intact without causing market disruptions.
Tether’s CEO, Paolo Ardoino, explained that these transactions replenish inventory rather than immediately entering circulation. This approach aligns with inventory management principles, keeping the stablecoin supply consistent and reliable for users.
1B USDT Inventory Replenishment on Ethereum. Source: Paolo Ardoino
Tether’s minting activities also highlight broader trends in the stablecoin market, where efficiency and cost-effectiveness drive adoption. Above all, while Ethereum and Tron remain the primary networks for minting, Tron’s scalability has positioned it as a central hub for DeFi liquidity and blockchain-based payment systems.
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