Tether, the leading issuer of the largest US dollar-pegged stablecoin by market capitalisation, has announced plans to launch its $USDT tokens on the Aptos blockchain.
This development marks another significant step in Tether’s ongoing efforts to enhance the global accessibility and utility of digital currencies.
Aptos is a high-speed layer-1 blockchain that has emerged as a strong competitor to Ethereum. It is particularly designed for scalability and speed, leveraging a Proof-of-Stake (PoS) consensus mechanism that allows validators to stake $APT tokens to secure the network.
Aptos also processes transactions in parallel, aiming to maximise efficiency. According to Tether, the integration with Aptos is part of a broader strategy to expand the availability and functionality of digital currencies worldwide.
The firm highlighted the blockchain’s advanced technology, which has already demonstrated substantial ecosystem growth. Data shows that the number of daily active users on Aptos increased from 96,000 in January to 170,000 by July 2024.
In May 2024, Aptos processed a record-breaking 157 million transactions in a single day.
The announcement also noted that $USDT gas fees on Aptos would be less than a penny, making transactions more cost-effective for users.
The Head of Grants & Ecosystem at Aptos Foundation, Bashar Lazaar, expressed enthusiasm for the partnership, stating that the launch of $USDT on Aptos would enhance the availability and utility of real-world value for a wide range of users, including institutions, Web3 developers, and everyday users. He added:
“We’re building a strong, global, and institution-grade DeFi and payments ecosystem that values speed, decentralisation, and interoperability while leveraging Move on Aptos to make it all work.”
New minting activity
In related news, Tether recently minted 1 billion $USDT tokens on the Tron network, a move that has sparked discussions about potential shifts in the cryptocurrency market.
On 20 August, blockchain data revealed that Tether’s Treasury minted and transferred $1 billion worth of $USDT to its treasury wallet on Tron.
This minting follows a similar event on 15 July, where another billion $USDT was created on the same network, indicating rising demand for the stablecoin amid a recovering crypto market.
Tether CEO, Paolo Ardoino, confirmed the transaction, clarifying that it was an “inventory replenish” on the Tron Network.
He explained that the transaction was authorised but not yet issued, meaning the tokens would serve as inventory for future issuance requests and chain swaps.
A similar $1 billion inventory replenish on Ethereum happened on 13 August, reinforcing Tether’s strategy of ensuring sufficient supply across multiple blockchains.
Ardoino noted that the minting ensures Tether can meet sudden demand increases without delay, maintaining smooth liquidity management.
Dominating the stablecoin market
Tron’s dominance in the stablecoin market continues to grow, with the network now commanding nearly 38% of the total stablecoin supply.
As of writing, Tether’s net circulation on Tron reached over $60.77 billion, reflecting the blockchain’s increasing popularity.
While Tether did not issue an official statement regarding the recent 1 billion $USDT mint on Tron, it is likely intended for similar purposes as the Ethereum mint: to meet anticipated demand.
Tether’s transparency page indicates that as of 19 August, only $36 million in $USDT on Tron remained authorised but unissued, suggesting a potential shortage and strong demand for the stablecoin on this network.
Tether’s actions could be seen as a strategic move in anticipation of a market rally, especially following Bitcoin’s recent recovery above the $60,000 resistance level.
The broader cryptocurrency market has also shown positive momentum, with smaller coins like $ETH, $BNB, $SOL, and $XRP registering gains alongside $BTC.
