Tether, the operator of the world’s largest stablecoin, has recently minted another billion USDT. This transaction, however, is authorized but not yet issued. Tether CEO Paolo Ardoino clarified that this amount will be used as inventory for future issuance requests and chain swaps on the Ethereum blockchain.

It’s important to note that these newly minted tokens are not currently part of the total market capitalization of USDT, as they have not been released into circulation. Tether’s transparency page reveals that there is currently $925 million in authorized but not issued USDT on Ethereum.

This is not the first time Tether has engaged in such transactions. In September 2023, a similar minting of one billion USDT took place, with Ardoino explaining that it was an authorization rather than an actual issuance.

However, some skeptics have raised concerns about the lack of transparency surrounding these authorized but not issued transactions. They question the decision-making process and the individuals responsible for creating such a large amount of USDT.

Furthermore, there are speculations that this latest minting of USDT could be used to pump the price of Bitcoin. Tether’s USDT minting has been linked to Bitcoin price increases in the past.

Tether has experienced significant growth over the past year, with its market capitalization reaching new all-time highs. The company’s market value has surged from $66 billion to $91 billion since January, driven by factors such as market excitement around a potential Bitcoin exchange-traded fund and Tether’s own involvement in Bitcoin-related activities.

At the time of writing, Bitcoin is trading at $42,760, down about 2% over the past 24 hours.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Global
Countries
Sentiment	neutral
Relevance Score	1
People	Paolo Ardoino
Companies	Tether, CoinGecko, Whale Alert, Ethereum, Tron
Currencies	Tether, Bitcoin
Securities	None