Recently, the Tether treasury minted 1,000,000,000 USDT tokens, equivalent to $1,000,400,000, on the Ethereum blockchain. The transaction attracted a fee of 0.0132594 ETH worth $25.72.
According to Paolo Ardoino, Tether’s CTO, Tether minted the tokens to replenish its inventory on the Ethereum network. He noted it is an authorized but not issued transaction, meaning Tether will use the minted tokens as inventory for future issuance and chain swaps.
Ardoino said:
Tether reportedly announced a $700 million profit last December for the last quarter of 2022. It reported the profit to have enhanced its consolidated assets, boosting it to around $67.04 billion, with consolidated total liabilities of $66.08 billion during the same period. Altogether, Tether estimated its excess reserve to be about $960 million.
Last month, Ardoino projected that Tether’s excess reserve would increase by another $700 million in Q1, 2023. That would bring it to $1.66 billion and mark the first time the company’s excess reserve would cross $1 billion.
It appears to be a significant season for Tether, as it seems to be experiencing notable growth in different areas. Apart from an expanding excess reserve, user adoption of the flagship stablecoin appears to be rising. Data from Glassnode, the on-chain metrics aggregator, shows the number of USDT addresses created to have crossed 30 million for the first time. As of Glassnode’s report, the number of USDT addresses stood at 30,000,303.
According to reports, Ardoino described Tether as an 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.
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Source: Cryptocurrency - investing.com
