Tether CEO Paolo Ardoino said on social media that the minting was "an authorized but unissued transaction," meaning the tokens are not currently in circulation.
Tether, a major stablecoin issuer, has minted an additional $1 billion of its USDT stablecoin on the Ethereum blockchain in a move it says is “replenishing” its inventory in anticipation of a surge in demand.
The minting took place on December 25 and was first reported by Whale Alert on social media. Shortly thereafter, Tether CEO Paolo Ardoino confirmed the minting, writing on X:
“Announcement: A $1 billion USDT inventory replenishment was conducted on the Ethereum network. Please note that this is an authorized but not yet issued transaction, which means that this amount will be used as inventory for the next round of issuance requests and on-chain transactions.”
refill supplies
Inventory replenishment involves refilling supply in anticipation of increased customer demand. In the context of Tether, this refers to the creation of new USDT tokens, which are held in Tether reserves. These tokens are considered "authorized but not issued," meaning they are not yet in circulation and have not yet had an impact on the current total market value of USDT.
Data from Tether’s transparency page shows that there is $925 million worth of this USDT on Ethereum as of Dec. 26. The stablecoin issuer has experienced substantial growth over the past year, with its market capitalization increasing by about 38% from $66 billion to $91 billion.
This impressive growth can be attributed to various factors. One of them is the expectation and excitement surrounding the potential approval of a spot Bitcoin exchange-traded fund. In addition, Tether’s increased involvement in Bitcoin-related activities, including investments in the flagship cryptocurrency and the launch of Bitcoin mining operations, also contributed to this growth.
Despite concerns regarding its transparency and reserves, USDT remains the stablecoin of choice for most people around the world who interact with cryptocurrencies.
Transparency concerns
Although Tether’s CEO provided an explanation, the action drew skepticism from some industry observers and participants.
The transparency and decision-making process behind these massive mintings raises a host of questions. Commentators on social media platforms, as well as some industry observers, are speculating on the potential impact of the move on the price of Bitcoin.
Tether has not provided additional comment on this latest minting. The development remains a hot topic of discussion within the cryptocurrency community. #Tether #稳定币铸造
