Tether Mints 4 Billion USDT in One Month Amid Crypto Market Observations

Tether, a leading stablecoin issuer, has increased its minting activities in the past month, creating 4 billion USDT tokens. The new USDT supply represents nearly 18% of all USDT issued in 2023 and reflects Tether’s growing dominance in the stablecoin market.

According to blockchain data provider Whale Alert, Tether issued 1 billion USDT on the Tron blockchain on Nov. 10, following another 1 billion USDT on Ethereum on Nov. 9. These two batches were preceded by 2 billion USDT issued on the Tron blockchain on Nov. 3 and Oct. 19.

Paolo Ardoino, Tether’s Chief Technology Officer and newly appointed CEO, explained the latest USDT minting transactions on X (formerly Twitter). He said that the 1-billion-USDT transaction on the Tron network was a “USDT inventory replenish” for future issuance requests and chain swaps. He also noted that these transactions were authorized but not issued, meaning that the amount was not yet in circulation.

Tether has been actively minting new USDT stablecoins throughout the year. In March 2023, Tether minted 9 billion USDT, adding to the 3 billion minted in the previous month, Whale Alert data shows. The stablecoin issuer also minted 3.75 billion USDT between June 12 and July 12.

While minting new stablecoins, Tether has also burned some coins, indicating a balanced approach to supply management. For instance, Tether burned 1.2 billion USDT on the Tron blockchain in August, 3.1 billion Tron USDT in June, and 2 billion Ethereum USDT in February.

The crypto community has been vigilant about Tether’s minting activities, especially in light of historical events. A notable example was a significant USDT minting coinciding with the shutdown of major banks like Silicon Valley Bank, Silvergate, and Signature Bank in March 2023. Some industry observers alleged a connection between Tether and Signature, but Tether denied any exposure to these banks.

In addition to minting new coins, Tether has been working on integrating a major ecosystem component recently, Ardoino announced. He said that Tether is preparing to launch five new projects in 2024.