Tether Treasuries minted another 1 billion USDT on September 16th, as confirmed by blockchain explorer Whale Alert.
The mint, conducted on the Ethereum network, was later clarified by Tether’s CEO, Paolo Ardoino, who emphasized that the newly minted tokens are not yet issued and are intended for inventory replenishment. This action ensures that Tether can meet future demand for USDT without disrupting the market.
Tether’s CEO clarifies mint purpose
Following the Whale Alert’s notification, Paolo Ardoino promptly addressed concerns regarding the large mint. He explained that the transaction was authorized and is part of Tether’s standard practice for maintaining liquidity across different networks. Ardoino assured that these tokens would not enter circulation immediately but would instead serve as a reserve for upcoming issuance requests and chain swaps.
Ardoino’s statement provided clarity, noting that the transaction does not reflect an immediate increase in the circulating supply of USDT. The minting aims to prepare for future demand, ensuring Tether can efficiently meet issuance requests.
Tether’s presence across multiple blockchains
Tether’s operations extend beyond the Ethereum network, with USDT tokens being minted across various blockchains, including Tron, Cosmos, and EOS. According to Tether’s transparency data, the total authorized supply of USDT on Ethereum is approximately $53.9 billion, with an additional authorized but not issued supply valued at $63.5 million. In comparison, the Tron network hosts the largest supply, with $61.8 billion authorized and $762 million authorized but not yet issued. The net circulation of USDT on Tron is currently $61.03 billion, highlighting Tron’s dominant position in the stablecoin market.
Market Reactions to USDT minting
The recent minting event has sparked a wave of bullish sentiment among the cryptocurrency community. Users on social media platforms responded positively to the news, with some interpreting the mint as a sign of an impending market rally. Speculation arose that the minting might be in anticipation of increased demand for Bitcoin and other cryptocurrencies as investors prepare to capitalize on potential market opportunities.
Analysts have also commented on the broader market outlook. Michaël van de Poppe, the founder of MNConsultancy, recently suggested that Bitcoin and commodities might enter a long-term bull run, potentially lasting up to ten years. This view aligns with the sentiment expressed by some market participants following Tether’s latest mint.
On August 9th, Tether minted and transferred $1.3 billion to major exchanges, including Coinbase, Kraken, and OKX. This event coincided with Bitcoin’s recovery from a five-month low, reinforcing the perception that Tether’s minting activities often precede significant market movements.
The minting of another billion USDT on September 16th underscores Tether’s ongoing role in the cryptocurrency market. As the largest stablecoin by market capitalization, Tether is crucial in providing liquidity and stability across various blockchain networks.