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A blockchain monitoring and analytics platform said that Tether USDT/USD Treasury has generated an additional 1 billion USDT tokens.
What Happened: The event was logged on the Ethereum ETH/USD network and represents a sizable expansion to Tethers existing supply.
Tether CEO Paolo Ardoino explained the reasoning behind the token generation on X. Ardoino stated the new tokens are meant for inventory replenish within the Ethereum framework. He emphasized that this was an authorized but not issued transaction."
It should be noted that 1 USDT is equivalent to $1, which means $1 billion worth of USDT was generated.
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. Paolo Ardoino ? (@paoloardoino) December 25, 2023
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Why It Matters: The fresh batch of USDT minted by Tether is not immediately introduced into the market. Instead, the tokens serve as a reserve to meet future distribution needs or to execute chain swaps when required.
Thus, the newly created USDT will be deployed into circulation as market demand warrants, ensuring liquidity is maintained and potential transactional needs are met.
Photo by DrawKit Illustrations on Unsplash
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