In response to Tether’s previous issuance of 1 billion USDT on Ethereum, Paolo Ardoino, chief technology officer of Tether, said that although some people believe that the minting of new USDT is a catalyst for increasing demand for cryptocurrencies.
But the minting of new USDT aims to balance the liquidity of USDT on different chains. For example, an exchange may hold a large amount of USDT on Tron, but needs to process the withdrawal of USDT on Ethereum, so such third parties require chain swaps.