Tether treasury sends Binance $750M USDT in chain swap transaction News ▸ Binance ▸ Ethereum · Tether ▸ Stablecoins
Tether treasury sends Binance $750M USDT in chain swap transaction
The stablecoin issuer's vocal CTO also announced the minting of 1 billion new USDT.
2 min read
Updated: Jun. 12, 2023 at 3:14 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Tether’s treasury sent Binance $750 million USDT on June 12, per data from blockchain analytical firm Arkham Intelligence.
The transactions were sent in three batches of $250 million after a $10 test transaction.
Earlier today, the exchange informed users that it would directly swap 750M USDT-TRX for USDT-ETH with Tether to ensure stablecoin liquidity across all chains.
Tether mints 1 billion USDT
Earlier on June 12, Tether’s CTO Paolo Ardoino had tweeted that the stablecoin issuer would mint 1 billion USDT tokens to replenish its inventory on the Ethereum blockchain.
Blockchain analytical firm Arkham confirmed the transaction, adding that this was Tether’s first minting on Ethereum since late April. Arkham Intelligence noted that the stablecoin issuer only held $146 million USDT on the blockchain 12 hours ago.
Ardoino stated the transaction was “authorized but not issued … meaning that this amount will be used as inventory for [the] next period’s issuance requests and chain swaps.”
Chain swap is a process of moving cryptocurrencies from one blockchain to another. According to Tether’s website, it usually carries out this process on the request of an exchange with surplus funds on one blockchain but a deficit on another.
Meanwhile, Tether remains the dominant stablecoin in the crypto industry, with a market cap of $83.38 billion and a 24-hour volume of $20.89 billion, according to CryptoSlate’s data.
Regulatory battles
The transaction comes on the heels of the regulatory troubles that have battled the exchange over the past week. On June 5, the U.S. Securities and Exchange Commission (SEC) sued the exchange for violating federal securities law and facilitating the trades of crypto securities tokens.
Since then, the regulator has moved to freeze the assets of its U.S. subsidiary, Binance.US, and issued a court summons for its CEO, Changpeng Zhao, widely known in crypto circles as “CZ”. Additionally, Senator Elizabeth Warren urged the U.S. Department of Justice to investigate the platform’s previous statement to Congress.
Amid these issues, the exchange recorded over $3 billion in outflows during the past seven days, according to DeFillama data.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Ethereum
$3,350.72
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
Paolo Ardoino joined Bitfinex at the beginning of 2015 and now serves as Chief Technology Officer.
