Tether Clarifies About USDT 2 Billion Printing On Ethereum, Here's The Explanation!

JAKARTA - Tether, the world's largest stablecoin publisher, recently made an announcement that caught public attention. Tether scored 2 billion USDT on the Ethereum network, which immediately invited a question mark from the community. This news was first spread through a report from Whale Alert, a platform that monitors major transactions on blockchain. Tether CEO Paolo Ardoino immediately provided clarification regarding the USDT printing, calling this move part of a strategy to balance liquidity in various blockchains.

Reporting from Coingape, through a statement on social media platform X, Paolo Ardoino explained that printing 2 billion USDT is not a new supply to the market. The transaction, he said, was part of an inter-network swap, namely liquidity transfer from a less active blockchain to the Ethereum network. Ardoino also explained that this move involved cooperation with a leading exchange and was carried out to ensure adequate liquidity on the Ethereum network, which recorded higher demand.

This chain swap is part of asset management efficiently and does not affect the total supply of USDT in circulation, "explained Ardoino. He added that Tether plans to stop using USDT in several low-activity blockchains, diverting the funds to Ethereum, which is currently showing high demand from the market. Tether also stated that this step was taken so that they could respond more flexibly to demand movements and increase liquidity in more active blockchains.

The swap chain is a process of transferring crypto assets from one blockchain network to another. This process allows users or token issuers to balance liquidity and maximize the use of digital assets in different networks. In this case, Tether moves USDT tokens from networks such as TRC20 (Tron), Avalanche, NEAR, CELO, and EOS to Ethereum. The goal is to meet high demand for Ethereum and provide flexibility for users who prefer the Ethereum ecosystem for their transactions.

In detail, this swap involves about 1 billion USDT from the TRC20 network, 600 million from Avalanche, 300 million from NEAR, 75 million from CELO, and 60 million from EOS. A total of 2 billion USDT is then integrated into the Ethereum network, allowing users to take advantage of such stablecoins in networks that have a larger ecosystem and user base. The management of this liquidity distribution reflects Tether's strategy to provide availability that suits the highest demand location, as well as to maintain user flexibility in diverse ecosystems.

Although Tether scored an additional 2 billion USDT on Ethereum, it's important to note that this is not an increase in new supply, but only existing token redistribution. With this strategy, Tether ensures that the amount of USDT in circulation remains stable, while network distribution is tailored to keep liquidity on market demand. Currently, USDT's total supply reaches 120.4 billion tokens, down from 120.7 billion after some tokens are drawn from circulation on less active networks.