- Tether minted billions worth of USDT on Ethereum.
- The company’s CEO said the transaction involved inventory replenishment.
- This came after Tether reallocated 2 billion USDT from other networks to Ethereum.
Stablecoin issuer Tether recently minted billions of USDT on the Ethereum network, stirring speculations on whether the crypto market will extend its rally as Donald Trump heads back to the White House in January next year.
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Trump’s decisive win in the U.S. presidential election caused the crypto market to shift sharply. Prices of notable assets like Bitcoin hit historic levels as investors anticipated crypto-friendly policies from the incoming administration. Shares on Wall Street also surged, while the dollar posted its biggest gain in eight years.
Tether’s Latest USDT Replenish
According to a recent X post by Whale Alert, Tether’s treasury minted 2,000,000,000 USDT on the Ethereum blockchain on November 23, a week after it minted $1 billion worth of the stablecoin on Tron with zero fees. Tether paid a transaction fee of $8.56 for the latest mint.
Tether CEO Paolo Ardoino later confirmed the news and clarified that the massive transaction involved an inventory replenishment on the Ethereum network.
“PSA: 2B USDt inventory replenish on Ethereum Network. Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.” Ardoino wrote on X.
Stablecoin issuers often replenish their inventory when they anticipate increased customer demand. By minting additional USDT now, Tether can swiftly meet an Ethereum demand uptick without the delay of minting new tokens at that time.
The development followed Tether’s move in early November to reallocate $2 billion worth of USDT from multiple blockchain networks to Ethereum. This included 1 billion USDT from Tron and 1 billion tokens from Avalanche’s C-Chain, NEAR, CELO, and EOS.
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