Tether Says $2B USDT Mint on Ethereum Was Chain Swap

Published: 2025-09-04 23:29:06 |

Tether CEO Paolo Ardoino clarified that the recent USDT minting on Ethereum did not increase the stablecoin’s total supply. The $2B USDT minting on Ethereum by Tether Treasury was not a new issuance but a chain swap. Binance converted 2 billion USDT from the Tron chain to the Ethereum network during this USDT minting event. This chain swap moved existing tokens without new issuance, leaving the circulating supply unchanged. Ardoino’s statement aims to reassure traders about USDT’s stability and transparency. The chain swap highlights Tether’s multi-chain liquidity management and underlines growing demand for USDT across networks. Market participants can view this process as neutral for USDT pricing and market stability since no fresh tokens were created. Such USDT minting events often fuel speculation, but this clarification quells concerns about inflationary pressure. Traders should monitor future chain swaps as part of liquidity movements, but they need not worry about sudden supply shocks.

Neutral

This clarification is neutral for the market because the $2B USDT minting on Ethereum was merely a chain swap, not a net increase in supply. In past instances, similar USDT minting events without new issuance had minimal impact on USDT pricing or market sentiment. In the short term, traders are unlikely to adjust positions based on token transfers between chains. Over the long term, consistent transparency around chain swaps can reinforce confidence in USDT’s stability and liquidity management. As no fresh tokens entered circulation, there is no inflationary pressure, keeping market dynamics unchanged.