Tether has minted over $3 billion in USDT

by

As a seasoned crypto investor with a knack for spotting trends and understanding their implications, I find Tether’s recent actions intriguing. The massive minting of USDT suggests a high demand for this stablecoin, which is undoubtedly positive for the market. However, it also raises questions about potential inflation and the long-term stability of Tether itself.

In the last 24 hours, the world’s leading stablecoin producer, Tether, has created more than $3 billion worth of USDT. This daily production adds to their monthly total.

Based on a post by LookOnChain dated November 24th, it’s reported that Tether generated approximately $3 billion in USDT daily. This amount was broken down into two separate transactions: one for $2 billion and another for $1 billion. Both of these transactions were deposited into the company’s treasury wallet at the same time.

Since the beginning of November, Tether has produced approximately $13 billion in digital coins. Notably, they minted substantial amounts multiple times during this period: $9 billion on November 8th, another $1 billion on November 21st, and yet another $1 billion on November 23rd.

Minting stablecoins by issuers can be seen as a constructive move for the market, as it suggests growing interest in their coins and potential increase in demand. Conversely, minimal minting activity from the issuer might signal a bearish trend, indicating less enthusiasm or reduced demand for the stablecoin in the market.

Tether business, from stablecoin to energy

Tether has broadened its operations by partnering with the UAE government. Together, they have introduced a new digital currency pegged to the UAE Dirham, which is completely collateralized by the nation’s reserves and maintains a value equivalent to the AED.

The company plans to digitize the UAE’s currency (dirham) because of their ambition for the UAE to be a major player in the global economy. This move is also intended to cater to the requirements of the UAE’s financial market, positioning it as one of the key Asian financial hubs.

Additionally, the company partnered with Quantoz Payment to aid in the debut of the Euro and U.S. steady-state coin, specifically named EURQ and USDQ.

In October, the investment division of Tether financed a real-world oil trade worth $45 million using cryptocurrency USDT. This transaction signifies an important step in their expansion strategy, shifting from their longstanding reputation as a provider of stablecoins.

Under this program, prominent global oil companies will be able to ship their crude oil directly to a top commodity dealer. This deal involves transferring approximately 670,000 barrels of crude oil from Middle Eastern nations.

Read More

2024-11-25 06:56