Tether mints $1B new non-circulating USDT to ‘replenish inventory’ News ▸ Tether ▸ Stablecoins
Tether mints $1B new non-circulating USDT to ‘replenish inventory’
Tether CEO Paolo Ardoino shared on social media that the minting was "an authorized but not issued transaction," meaning the tokens remain out of circulation for now.
2 min read
Updated: Dec. 26, 2023 at 5:31 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Tether, a major stablecoin issuer, has minted an additional $1 billion of its USDT stablecoin on the Ethereum blockchain. This move is said to “replenish” its inventory in anticipation of a surge in demand.
The minting occurred on Dec. 25 and was first reported by Whale Alert on social media. The mint was confirmed by Tether CEO Paolo Ardoino shortly after, who wrote on X:
“PSA: 1B USDt inventory replenish on Ethereum Network. Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.”
Restocking
Inventory replenishment involves restocking supplies in anticipation of customer demand. In Tether’s context, it refers to the creation of new USDT tokens that are kept in the Tether treasury. These tokens are considered “authorized but not issued,” meaning they are not yet circulating or contributing to USDT’s current total market cap.
Data from the Tether Transparency page indicates that as of Dec. 26, there are $925 million worth of such USDT on Ethereum. The stablecoin issuer has experienced substantial growth over the past year, with its market cap growing roughly 38% to $91 billion from $66 billion.
This impressive growth can be attributed to various factors. One is the anticipation and excitement surrounding the potential approval of a spot Bitcoin exchange-traded fund. Furthermore, Tether’s increased involvement in Bitcoin-related activities, which include investments in the flagship cryptocurrency and the initiation of Bitcoin mining operations, has also contributed to this growth.
USDT remains the stablecoin of choice for most people engaging with cryptocurrencies around the globe despite concerns about its transparency and reserves.
Transparency concerns
Despite the explanation provided by Tether’s CEO, the action has spurred skepticism among some industry observers and participants.
The transparency and decision-making process behind these large-scale mints have raised several questions. Commenters on social media platforms, along with some industry observers, are speculating about the potential impact of this move on Bitcoin’s price.
Currently, Tether has not provided additional comments on this recent minting. The development continues to be a topic of intense discussion within the cryptocurrency community.
Mentioned in this article
Posted In: Tether, Stablecoins
Author 
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Bitcoin
$97,424.93
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Paolo Ardoino joined Bitfinex at the beginning of 2015 and now serves as Chief Technology Officer.