Tether CEO, Paolo Ardoino, recently addressed the latest on-chain data from Whale Alert, which reported that the Tether Treasury had minted and added 2 billion USDT on the Ethereum blockchain in a single transaction. Ardoino clarified that the notification was delayed and explained that the transaction was part of a larger strategy involving a chain swap with a prominent third-party exchange.
This chain swap involves converting part of their USDT cold wallets from various blockchains to USDT on Ethereum. The objective is to retire USDT from several low-activity blockchains, consolidating them on Ethereum for better asset management and increased liquidity. This strategy aims to optimize liquidity across different blockchain ecosystems and make USDT readily available to users where demand is most robust.
Despite the supply reduction, USDT remains the largest liquidity supply source on the market.
