Tether mints $1 billion USDT on Tron network, pays zero fees in breakthrough transaction
Tether mints $1 billion USDT on Tron network, pays zero fees in breakthrough transaction
In a move highlighting the growing adoption of blockchain technology, Tether minted $1 billion worth of USDT stablecoins on the Tron network on Nov. 14. The transaction, facilitated without fees, underscores the increasing utility of Tron’s low-cost infrastructure for stablecoin issuers and users, particularly in regions where excessive network fees can hinder financial transactions.
The minting process involved transferring the USDT from a “black hole address” to Tether’s multisignature wallet, with the funds ultimately being placed in the company’s treasury. These newly minted tokens are authorized but not immediately issued, remaining in Tether’s inventory until requested for issuance on the open market.
Tron’s growing share in the stablecoin market
Tether’s decision to mint on Tron reflects the blockchain’s growing importance in the stablecoin market. According to Tether’s transparency data, $62.7 billion in USDT is authorized on Tron, nearly matching Ethereum’s $62.9 billion. Tron’s low transaction fees and fast processing times have made it a preferred network for stablecoin transfers, particularly in developing countries.
Stablecoin supply is a key indicator of market sentiment. Tether CEO Paolo Ardoino explained that the $1 billion minted on Tron replenishes inventory for future issuance. An increase in stablecoin supply is generally seen as a bullish signal, suggesting that traders are preparing for higher market activity. Conversely, a reduction could signal lower trading interest.
As Tron continues to challenge Ethereum’s dominance in stablecoin activity, the blockchain’s low-cost model may drive further adoption, especially in regions with high remittance needs. The competition between these ecosystems is set to shape the future of stablecoin markets and blockchain-based financial solutions.
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