Stablecoin issuer Tether has minted another 1 billion tokens on the Tron network, bringing the total USDT minted in the last year to $33 billion.
On Aug. 20, blockchain data showed that Tether minted $1 billion in USDT (USDT) tokens on the Tron network and sent them to the Tether Treasury wallet. According to the onchain analytics platform Lookonchain, the Tether Treasury minted $33 billion in stablecoin tokens last year.
Tether mints 1 billion USDT tokens on Tron. Source: Tronscan
The data platform said 19 billion USDT tokens were minted on the Tron network, while 14 billion tokens were created on the Ethereum blockchain.
Tether replenishes stablecoin inventory
Tether’s 1 billion mint on Tron follows another token mint of the same value on Ethereum. On Aug. 13, data tracking platform Whale Alert flagged a transaction that showed that the stablecoin issuer added another 1 billion on Ethereum.
Tether CEO Paolo Ardoino said on X that the $1 billion transaction was simply a “USDT inventory replenish” on Ethereum. The executive said that the transaction was authorized but not issued, which means that it will be used as inventory for the issuer’s next batch of issuance requests and chain swaps.
In traditional businesses, inventory replenishment requires stock orders to meet demands. Similarly, Tether may create USDT to maintain a sufficient supply and hold them until they are officially issued. This ensures smooth liquidity management without an immediate release into circulation.
Cointelegraph reached out to Tether for comments but did not get an immediate response.
Related: Tether expands USDT to Aptos blockchain for lower fees
While Tether did not publish official statements regarding the new 1 billion tokens on Tron, they are likely to have the same purpose as the recently minted USDT tokens on Ethereum.
According to Tether’s Transparency page, the stablecoin issuer’s treasury only has $36 million USDT tokens on Tron that are “authorized but not issued” as of Aug. 19. This means that Tether may be running low on USDT on the Tron network, highlighting a strong demand for the stablecoin on Tron.
Tron currently leads the stablecoin supply market. On Aug. 16, Coin Metrics Network data showed that the network commands 37.9% of the total stablecoin market share, with over $61 billion in stablecoins in the blockchain.
Magazine: Asia Express: WazirX hackers prepped 8 days before attack, swindlers fake fiat for USDT