Ethereum News Today: Tether Issues 1 Billion USDT on Ethereum for Inventory Scaling, Boosting Network Supply to 160 Billion

Tether Limited has issued an additional 1 billion USDT on the Ethereum network, as reported by blockchain tracking service Whale Alert on July 25. The transaction, described by Tether CEO Paolo Ardoino as "authorized but unissued," is intended to serve as inventory for future issuance requests and on-chain exchanges. This follows a prior Ethereum-based minting of 2 billion USDT on July 12, which was executed through two consecutive one-billion-dollar tranches [2]. The company’s rapid scaling of stablecoin issuance highlights its capacity to respond to market demand, with Ethereum’s USDT supply now exceeding $160 billion [3][4].

Tether’s strategy to leverage blockchain scalability aligns with Ethereum’s recent record gas usage, emphasizing the network’s efficiency for high-volume transactions. Analysts note that the company’s ability to mint large amounts of USDT without immediate regulatory intervention underscores its role as a bridge between traditional finance and decentralized markets. However, questions persist about the transparency of stablecoin reserves, despite Tether’s assertion that its investments in over 120 companies—spanning Bitcoin mining, payments, and fintech—are funded entirely by operational profits [1].

The minting also intersects with broader regulatory scrutiny, particularly after the U.S. Treasury froze $1.6 million in terrorism-linked USDT earlier this year [6]. While Tether claims compliance with existing frameworks, such actions highlight the risks of illicit activity tied to stablecoins. The company’s approach to balancing innovation with regulatory compliance will be critical as it maintains a dominant market position.

Market reactions to the July 25 minting have remained subdued, with USDT’s price stabilizing near $1.00 despite a record $162.64 billion market capitalization [4]. Analysts caution that sustained supply growth could strain confidence if reserves are not adequately diversified. For now, demand for USDT remains robust across decentralized finance (DeFi) platforms, remittances, and trading pairs, reinforcing its function as a benchmark for crypto valuations.

Tether’s dual focus on operational expansion and strategic investments positions it to benefit from both short-term market cycles and long-term blockchain adoption. Yet, the absence of detailed reserve disclosures continues to draw criticism, particularly as stablecoin issuers face increasing oversight in major markets. The company’s response to these challenges will likely determine its ability to retain institutional trust.

Source:

[1] BlockBeats. [Tether Discloses Partial Investment Portfolio: Has Invested in Over 120 Companies, with a Focus on Bitcoin, Payment, and Other Sectors] (https://www.theblockbeats.info/en/flash/304143)

[2] Tether Price, USDT Price, Live Charts, and Marketcap. (https://www.coinbase.com/en-gb/price/tether)

[3] USDtb Price, usdtb to USD, Research, News & Fundraising. (https://messari.io/project/usdtb)

[4] Tether Price | USDT Price index, Live chart & USD Market. (https://www.okx.com/price/tether-usdt)

[5] Ethereum Achieves Record Daily Gas Usage. (https://m.economictimes.com/crypto-news-today-liveblog/122865756.cms)

[6] Tether Freezes $1.6M in Terrorism-Linked Funds. (https://m.economictimes.com/crypto-news-today-liveblog/122865756.cms)