Tether, a prominent issuer of the stablecoin USDT, has notably increased its token creation, generating 4 billion USDT in just the last month.
On November 10, Tether infused 1 billion USDT into the Tron blockchain, a move highlighted by blockchain analytics firm Whale Alert. This action was soon after a similar addition of 1 billion USDT on the Ethereum blockchain on November 9. Earlier, on November 3 and October 19, Tether had issued 2 billion USDT in two separate transactions on the Tron blockchain, according to Whale Alert.
Paolo Ardoino, Tether’s Chief Technology Officer and the newly appointed CEO, commented on these minting actions via social media. He emphasized that the recent 1-billion-USDT transaction on the Tron network was a preparatory step to boost USDT reserves. Ardoino stated:
“Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.”
Paolo Ardoino
These recent issuances form a substantial part of Tether’s total minting for the year. Whale Alert’s data reveals that Tether has produced 22.75 billion USDT in 2023, with 13 billion, or 57%, on the Tron blockchain and the rest, 9.75 billion, on the Ethereum blockchain.
Tether’s market capitalization has experienced significant growth over the past year, as indicated by CoinGecko’s data. In March 2023 alone, Tether issued a remarkable 9 billion USDT, following the 3 billion minted in the previous month. Additionally, Tether issued 3.75 billion USDT between June 12 and July 12.
Tether has also been actively involved in coin burning processes. On August 22, the company eliminated 1.2 billion USDT from the Tron blockchain. Earlier, in June and February, Tether burned 3.1 billion Tron USDT and 2 billion Ethereum USDT, respectively.
The crypto community has been closely monitoring Tether’s recent USDT minting activities. Some observers have pointed out a potential link between Tether’s significant USDT issuance and major market occurrences, such as the closure of banks like Silicon Valley Bank, Silvergate, and Signature Bank in March 2023.
Amid these bank shutdowns, there were rumors about Tether’s association with Signature Bank. However, Tether categorically denied these allegations, asserting it had no ties to Silvergate, Silicon Valley Bank, or Signature Bank.
Recently, Tether has been expanding its focus. Ardoino, now CEO of Tether, announced plans to launch five new projects in 2024. He hinted at their potential impact, suggesting:
“Some of these projects could significantly disrupt certain established Web2 centralized services.”
Paolo Ardoino
