Tether, one of the most recognized issuers of stablecoin, has just created an additional $1 billion USDT. This fresh minting of USDT tokens, primarily earmarked for the Tron blockchain, is a significant addition to multiple prints carried out over the recent weeks.
The news of this hefty transaction was reported by blockchain monitor Whale Alert barely a week after a similar $1 billion was minted on the Ethereum platform. As explained by Paolo Ardoino, Tether’s CEO, these tokens have been authorized but not yet officially issued, a move that is indicative of an “inventory replenish.” This practice of minting in response to future demand ensures there’s a sufficient supply for adequate liquidity management. The tokens will subsequently be released into circulation when formally issued.
This replenishment signifies an escalating requirement for USDT on Tron, which has been experiencing low supply. As of 19 August, Tether’s transparency page recorded a mere $36 million USDT tokens on Tron, which were endorsed but not yet issued. However, today’s additional $1 billion will boost Tether’s total issuance to a whopping $17 billion since Bitcoin’s peak about $73,000.
This persistent minting accompanies recent market rallies and reinforces speculation that these issuances might be propelling the current momentum of the crypto market. An increase in the total stablecoin market capitalization boosts liquidity within the crypto markets, making it easier for traders to navigate asset transactions, and improving both price stability and market efficiency.
However, this uptick in liquidity may also suggest increased risk, as investors may turn to stablecoins like Tether as a safe haven during periods of market uncertainty or high volatility.