According to the most recent data from blockchain tracking and analytics firm Whale Alert, the Tether Treasury has minted 1 billion USDT. Today’s issuance is not the first time Tether has minted USDT on different blockchains.
Newly-minted USDT not in circulation
The transaction, which was recorded on the Ethereum network, substantially raised Tether’s circulating supply and is part of the company’s strategy for managing liquidity in the crypto market.
Tether CEO Paolo Ardoino took to X to clarify the nature of the transaction. Ardoino stated that the minting is for a “1B USDt inventory replenish on Ethereum Network. 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.”
PSA: 1B USDt inventory replenish on Ethereum Network. 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 🤖🍐 (@paoloardoino) September 16, 2024
This means that the minted amount will be kept in inventory to meet future issuance requests and facilitate chain swaps as needed. Essentially, the newly minted USDT is not yet in circulation and will only be released in response to future demand.
During periods of bullish activity in the crypto markets, investors often move large amounts of capital into and out of different crypto coins. USDT provides a stable intermediary for traders looking to secure profits or enter new positions without leaving the crypto industry entirely.
It serves as a safe haven during the excessive volatility that frequently accompanies bull markets. According to CoinMarketCap data, Tether’s market cap currently stands at $118.8 billion.
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Source: https://www.cryptonewsz.com/tethers-paolo-ardoino-clarifies-1b-usdt-minted/