Tether Continues Aggressive USDT Minting, Issuing 4 Billion Tokens in the Last Month

Tether, a major stablecoin issuer, has been rapidly minting new USDT tokens, with an astonishing issuance of 4 billion USDT in the past month alone.

This surge in token creation includes a recent transaction of 1 billion USDT on the Tron blockchain reported by blockchain data provider Whale Alert on Nov. 10. Notably, this followed another issuance of 1 billion USDT on Ethereum on Nov. 9, along with 2 billion USDT issued in two tranches on the Tron blockchain on Nov. 3 and Oct. 19, as per Whale Alert data.

Issuances, Blockchain Preferences, and CEO's Clarifications

Paolo Ardoino, Tether's Chief Technology Officer and new CEO, clarified on X (formerly Twitter) that the latest 1-billion-USDT transaction on the Tron network was an "authorized but not issued transaction." He emphasized that this amount would be used as inventory for future issuance requests and chain swaps, characterizing it as a strategic move.

These recent issuances contribute significantly to the total USDT minted in 2023, totaling 22.75 billion USDT according to Whale Alert data. Of this, 13 billion (57%) has been issued on the Tron blockchain, while the remaining 9.75 billion USDT was issued on the Ethereum blockchain. Tether's proactive approach to minting new stablecoins has been evident throughout the year, with a notable 9 billion USDT minted in March and an additional 3 billion the previous month.

Coin Burning and the Market Response

While Tether is actively minting new coins, the company has also been engaging in coin burning activities. On Aug. 22, 1.2 billion USDT was burned on the Tron blockchain, following earlier burns of 3.1 billion Tron USDT in June and 2 billion Ethereum USDT in February, according to Whale Alert.

The cryptocurrency community has reacted swiftly to Tether's recent minting spree. A crypto enthusiast pointed out the potential market impact, recalling the last time Tether printed such a significant amount in a week, coinciding with the closure of several banks in March 2023. Allegations of exposure between Tether and Signature Bank surfaced during that period, which Tether vehemently denied.

Beyond minting and burning activities, Tether is gearing up for significant developments. Ardoino announced on Twitter that the company is preparing to unveil five new projects in 2024, some of which could potentially challenge established Web2 centralized services. This suggests that Tether is not only focused on token issuance but is also actively working on integrating major ecosystem components.