NewsletterTether CEO Explains ‘Authorized but Not Issued’ USDT Transaction
On December 25th, Tether, the entity behind the world’s largest stablecoin, USDT, took a significant step to bolster its reserves. CEO Paolo Ardoino confirmed that Tether Treasury has minted an additional one billion USDT, a move described as ‘inventory replenish’ on the Ethereum blockchain.
Understanding Tether’s Inventory Strategy
This recent action by Tether involves creating USDT that remains in Tether’s treasury as ‘authorized but not issued’. In addition, it means these tokens are not yet active in the market circulation.
Ardoino clarified that this reserve is in preparation for future issuance demands and chain swaps. This mechanism is somewhat akin to traditional finance’s inventory replenishment, where companies maintain an optimal stock level to meet upcoming demands without hoarding excess.
Market Reaction and Speculations
Blockchain tracking platform Whale Alert initially reported this development, sparking various reactions in the crypto community. While some see this as a standard operational procedure, others expressed skepticism. Questions arose about the transparency of such transactions and their potential impact on the broader cryptocurrency market, including Bitcoin’s price dynamics.
Despite these mixed reactions, Tether has shown remarkable growth over the past year. Its market capitalization surged nearly 38% since January 2023, reaching $91 billion according to CoinGecko data. Tether’s aggressive expansion into Bitcoin-related activities, including mining operations and reserve management, underscores its influence in the cryptocurrency space.
A Balancing Act in Crypto Finance
Tether’s strategy highlights the delicate balance crypto financial entities must maintain. They need to ensure sufficient reserves for stability while fostering growth and adapting to the ever-evolving market demands. As the crypto world continues to intertwine with traditional finance, actions like Tether’s minting of USDT play a crucial role in shaping the industry’s future trajectory.
Read Also: Terra Luna Classic Community Turns Down Major Burn Proposal
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Michael Saylor Opposes Zcash-Style Privacy for Bitcoin, Citing Shutdown Risk
- Crypto Exchange Bitget Unveils Major GetAgent AI Overhaul With Faster Insights
- 8 Best Crypto Exchanges in Kenya for Investors and Traders in 2025
- Crypto Exchange HashKey Set to Open Investor Orders for $200M IPO, Eyes December Listing
- Just-In: Elon Musk’s SpaceX Moves Another $100M in Bitcoin, What’s Happening?
- Chainlink Price Prediction as Reserves Pass 1M LINK – Is $20 Next?
- Ethereum Price Breaks Out of Falling Wedge: Next Target Now Set at $5K
- Is ZCash Price Set for a Bigger Rally After Its 10% Surge on the Bitget Listing?
- Aster Price Outlook as Buyback Wallet Burns 77.86M ASTER Worth $79.81M
- What’s Next for Dogecoin Price After Whales Scoop 480M DOGE?
- Can Solana Price Bounce Back to $200 by End of 2025?
