Tether Amplifies Stablecoin Production: Mints 4 Billion USDT Tokens in a Month
Summary:
Tether, a renowned stablecoin issuer, has minted 4 billion USDT tokens in the past month across the Tron and Ethereum blockchains. This includes a recent addition of 1 billion USDT, referred to as "inventory replenish" by Tether's CEO and CTO, Paolo Ardoino. The latest mints represent a significant portion of this year's issuance, with Tether minting a total of 22.75 billion USDT in 2023. Ardoino also mentioned upcoming projects that could disrupt some popular Web2 centralized services. Meanwhile, the crypto community is closely monitoring these minting activities due to their potential market impact.
In the previous month, Tether, a key issuer of stablecoins, has been significantly ramping up the generation of new USDT (USDT) tokens, with a total of 4 billion USDT minted. According to blockchain data service, Whale Alert, an additional 1 billion Tether was released on the Tron blockchain on November 10. This followed a similar issuance of 1 billion USDT on the Ethereum blockchain on November 9, and 2 billion USDT across two rounds on the Tron blockchain on October 19 and November 3. Paolo Ardoino, Tether's CEO and Chief Technology Officer, referred to the latest billion USDT transaction on the Tron chain as a "USDT inventory replenish" on the X network (previously known as Twitter). He clarified that it was an authorised transaction pending issuance, designed to serve as a reserve for forthcoming issuance requirements and chain swaps. The recently minted USDT constitutes a significant fraction of this year's total USDT issuance. Whale Alert data suggests Tether has minted 22.75 billion USDT in 2023, of which 57%, or 13 billion were issued on Tron. The remaining 9.75 billion USDT was issued on Ethereum. Throughout the past year, Tether has been actively producing new USDT stablecoins. In March 2023 alone, the firm minted an impressive 9 billion USDT, over and above the 3 billion minted the preceding month. Besides, Tether burned some of its coins. For instance, 1.2 billion USDT was burned on the Tron blockchain on August 22. In February and June, Whale Alert reported that 2 billion Ethereum USDT and 3.1 billion Tron USDT were burned respectively. Cryptocurrency enthusiasts reacted swiftly to recent USDT minting transactions. One observer flagged the potential impact of aggressive USDT minting on the market. Signature Bank, Silvergate, and Silicon Valley Bank are alleged to have closed their operations in March 2023 due to previous Tether USDT minting sessions. Despite these allegations, Tether has emphatically denied having exposure to these banks. Apart from minting new coins, Tether has been integrating key parts of a major ecosystem, according to Ardoino. He announced on Twitter that the company is planning five new projects for 2024, which could potentially disrupt popular centralized Web2 services. Tether did not immediately respond to a request for comment from Cointelegraph.
Published At
11/13/2023 10:23:18 AM
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