Tether, known for issuing the largest dollar-backed stablecoin, has recently created $1 billion USDT on the Tron blockchain.
These tokens, not yet in circulation, are classified as “authorized but not issued,” according to Tether’s CEO Paolo Ardoino. This action is part of Tether’s routine inventory management to prepare for potential increases in demand, which often precedes upward movements in the cryptocurrency market.
The distinction of “authorized but not issued” USDT means these tokens exist in Tether’s treasury but are not backed by tangible reserves like the U.S. dollar or other assets.
Meanwhile, Justin Sun, founder of the Tron network, celebrated surpassing $60 billion in USDT issuance on Tron, marking a significant milestone for the blockchain.
Both Tether’s USDT and the Tron Network hold substantial sway over cryptocurrency market liquidity and capitalization. Yet, they also face scrutiny from global regulators and investors due to concerns about transparency and operational risks.
This development occurs amidst broader discussions within the industry about stablecoin stability and regulatory oversight, with entities like BlackRock and Circle highlighting potential risks associated with high USDT exposure in the market.
Cryptocurrency analyst Ali Martinez has raised concerns about Ethereum’s future performance against Bitcoin, suggesting a significant decline could be on the horizon.
The crypto market is seeing increased support from various industries, with payment firms playing a key role in promoting digital assets.
Binance, the leading cryptocurrency exchange, made headlines today with an update concerning several altcoins on its platform.
VanEck has taken a bold step by filing for a Binance Coin (BNB) exchange-traded fund (ETF) in Delaware, aiming to introduce the first BNB ETF to the U.S. market.