Tether Treasury, a well-known issuer of stablecoins, has recently minted 1 billion USDT tokens, which is equivalent to $1,000,400,000, on the Ethereum blockchain. The transaction attracted a fee of 0.0132594 ETH, which is worth $25.72. Paolo Ardoino, Tether’s CTO, stated that the tokens were minted to replenish the inventory on the Ethereum network. This was an authorized transaction, which means Tether will use the newly minted tokens as inventory for future issuance and chain swaps.
Ardoino added that Tether’s excess reserve is expected to increase by another $700 million in Q1 2023, bringing it to $1.66 billion. This would be the first time the company’s excess reserve would cross $1 billion. Tether announced a $700 million profit last December for the last quarter of 2022, which enhanced its consolidated assets, boosting it to around $67.04 billion, with consolidated total liabilities of $66.08 billion during the same period. Tether estimated its excess reserve to be about $960 million.
Tether seems to be experiencing significant growth in different areas. Apart from an expanding excess reserve, user adoption of the flagship stablecoin appears to be rising. According to Glassnode, the on-chain metrics aggregator, the number of USDT addresses created has crossed 30 million for the first time. As of Glassnode’s report, the number of USDT addresses stood at 30,000,303.
Ardoino described Tether as a safer alternative solution to the failing banks. He believes Tether is the safest option among all the choices for users seeking to divert funds away from the banks. Tether’s recent moves indicate that the company is positioning itself to be a major player in the digital asset space. With its expanding excess reserve and growing user adoption, Tether is poised to make a significant impact in the cryptocurrency market.
In conclusion, Tether’s recent move to mint 1 billion USDT tokens on the Ethereum network is aimed at replenishing its inventory. The company’s excess reserve is expected to increase by another $700 million in Q1 2023, which would bring it to $1.66 billion. Tether is experiencing significant growth in different areas, including an expanding excess reserve and growing user adoption. Tether’s CTO believes that the company is the safest option among all the choices for users seeking to divert funds away from the banks. Tether is positioning itself to be a major player in the digital asset space.
