Tether, the company behind the largest stablecoin by market cap, has minted $1 billion worth of USDT tokens on the Ethereum network. The transaction was spotted by Whale Alert, a service that monitors major cryptocurrency movements.
Tether Manager Releases Disclosure Regarding $1 Billion USDT Issuance
Tether CTO Paolo Ardoino has released a statement on the reason for the mint transaction.
Ardoino confirmed the development in a tweet, noting that the new supply will be used as inventory for future issuance requests and on-chain swaps.
Ardoino announced that the transaction has been authorized but has not yet been released. He also noted that the new supply will be used to fulfill future issuance requests and on-chain swaps, noting that the additional tokens are part of Tether's efforts to maintain sufficient inventory to support demand for USDT.
PSA: 1B USDt inventory replenish on Ethereum Network. Note this is a 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) April 20, 2023
With a market cap of over $81 billion at the time of this writing, Tether is the most widely used stablecoin in the crypto industry. It is designed to maintain a fixed value of 1:1 with the US dollar and provides a way for traders and investors to move their funds between different cryptocurrency exchanges without having to convert them into fiat currencies.
Tether has been the subject of controversy over the years, with some critics claiming that it lacks transparency and can be used to manipulate cryptocurrency markets.
The company has repeatedly denied these allegations, stating that it maintains rigorous standards for transparency and operates in compliance with all applicable laws and regulations.
*Not investment advice.