Tether Boosts Liquidity with $7 Billion USDT Minted in Six Days
Tether, the leading stablecoin issuer, has minted an additional 2 billion USDT today, bringing its total issuance to 7 billion USDT over the past six days. This surge in supply underscores a rising demand for liquidity in the cryptocurrency market, with potential implications for trading activity and asset valuations.
USDT Supply Surge Signals Market Activity
Historically, Tether’s large-scale USDT issuance has coincided with pivotal market movements. For example, in May 2024, the minting of 1 billion USDT aligned with a notable uptick in Bitcoin prices. Similarly, a $3 billion issuance on November 12 preceded Bitcoin’s rally past $90,000.
The latest USDT supply boost suggests an increasing need for stablecoins as tools for hedging and seamless transactions. The added liquidity could enhance market depth, tempering volatility and fostering price stability across the crypto ecosystem.
Tether Reports Record Profits Amid Business Expansion
Tether recently reported its Q3 2024 earnings, highlighting a record-breaking profit of $2.5 billion. The company’s total assets have soared to $134.4 billion, including reserves of 2,454 BTC and 42.3 tons of gold, according to CEO Paolo Ardoino.
Leveraging its robust revenue, Tether has ventured into new areas of business. This month, it completed its first crude oil transaction in the Middle East—a $45 million deal involving 670,000 barrels of oil settled in USDT. The milestone underscores stablecoins’ growing role in global commodity trading.
Regulatory Challenges Persist
Despite its advancements, Tether remains under scrutiny. A Wall Street Journal report recently raised concerns about potential involvement in illegal transactions. However, Ardoino has dismissed such allegations, emphasizing Tether’s compliance and transparency efforts.
As Tether continues to innovate and expand its global footprint, the implications of its growing USDT supply will be closely watched by market participants and regulators alike.