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Tether Mints 4 Billion USDT in a Month Amidst Crypto Market Observations

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TL;DR

  • Tether has minted 4 billion USDT in a month.
  • Previous Tether minting coincided with bank troubles in 2023, leading to concerns about potential exposure.
  • Tether is preparing to announce five new projects in 2024, aiming to disrupt centralized services in the Web2 era.

Stablecoin issuer Tether has been actively minting new USDT tokens, adding 4 billion USDT to circulation in the past month. The latest issuance includes 1 billion USDT on the Tron blockchain on November 10 and 1 billion on Ethereum on November 9. Tether’s Chief Technology Officer and new CEO, Paolo Ardoino, explained that these transactions were authorized but not yet issued, intending to serve as inventory for future issuance requests and chain swaps.

Growing USDT supply raises questions

The recent surge in USDT minting has caught the attention of the cryptocurrency community. Observers have noted that the increased issuance of Tether’s stablecoin has historically coincided with significant market events. One crypto enthusiast on social media pointed out that the last time Tether minted such a substantial amount of USDT in a week, it coincided with the financial troubles of several banks, including Silicon Valley Bank, Silvergate, and Signature Bank, in March 2023.

During that period, some industry observers had raised concerns about potential exposure between Tether and Signature Bank. Tether swiftly denied any such allegations, stating that it had no exposure to Silvergate, Silicon Valley Bank, or Signature Bank.

Tether’s year of active minting and burning

Tether has been actively minting new stablecoins over the past year. In March 2023, Tether minted a staggering 9 billion USDT coins, following an additional 3 billion minted in the previous month. The stablecoin issuer also minted a significant amount of USDT between June 12 and July 12, totaling 3.75 billion USDT.

However, it’s not just minting; Tether has also been burning some of its coins. On August 22, Tether conducted a burn event, eliminating 1.2 billion USDT on the Tron blockchain. Earlier in the year, Tether had burned 3.1 billion Tron-based USDT in June and 2 billion Ethereum-based USDT in February.

Despite the ongoing debate surrounding its operations, Tether is actively working on expanding its ecosystem. Paolo Ardoino, the CEO of Tether, recently took to social media to announce that the company is gearing up to reveal five new projects in 2024. He hinted that some of these projects could have a substantial impact on displacing popular centralized services from the Web2 era.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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