Tether mints 1B USDT to replenish supply on Ethereum network.
- Tether recently minted 1,000,000,000 USDT tokens, which is equivalent to US$1,000,400,000.
- The CTO of Tether said that the minted tokens will be used to replenish the stock on the network.
- The minted tokens will be used as inventory for future spending and chain exchanges.
Recently, the Tether treasury minted 1,000,000,000 USDT tokens on the Ethereum blockchain, which is equivalent to US$1,000,400,000 in value. A fee of 0.0132594 ETH worth US$25.72 was charged for the transaction.
1,000,000,000 #USDT (1,000,400,000 USD) minted at Tether Treasury https://t.co/Tpsakud9df
— Whale Alert (@whale_alert) April 20, 2023
According to Paolo Ardoino, Tether’s CTO, Tether minted the tokens to replenish its inventory on the Ethereum network. He pointed out that it was an authorized but unspent transaction, meaning that Tether will use the minted tokens as inventory for future spending and chain exchanges.
1B USDT inventory replenished on the Ethereum network. Note that this is an authorized but unspent transaction, which means that this amount will be used as inventory for the next period of spending requests and chain exchanges.
Tether reportedly announced a profit of USD 700 million for the last quarter of 2022 in December last year. The profit reportedly increased the company’s consolidated assets to about $67.04 billion, with total consolidated liabilities of $66.08 billion for the same period. Overall, Tether estimated its excess reserves at about $960 million.
Last month, Ardoino projected that Tether’s excess reserves would increase by another $700 million in the first quarter of 2023. This would take the company’s excess reserve past the $1 billion mark for the first time, reaching $1.66 billion.
It seems to be a significant season for Tether as the company seems to be witnessing remarkable growth in several areas. Apart from a growing surplus reserve, user adoption of the flagship stablecoin seems to be on the rise. Data from Glassnode, the aggregator of on-chain metrics, shows that the number of USDT addresses created has surpassed 30 million for the first time. At the time of Glassnode’s report, the number of USDT addresses stood at 30,000,303.
Ardoino reportedly described Tether as an alternative solution to failing banks. He believes that Tether is the safest option among all the options for users who want to divert money from banks.
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