Tether issued another 2 billion USDT today (14), bringing the total to 7 billion in the last six days.
This substantial increase in stablecoin supply injects significant liquidity into the cryptocurrency market, potentially influencing trading dynamics and asset valuations.
Increase in USDT issuance indicates growth in demand for liquidity
Historically, Tether's large-scale issuance of USDT has correlated with notable market movements. For example, in May 2024, the company issued USDT 1 billion, which was associated with subsequent increases in the price of Bitcoin.
Furthermore, the initial $3 billion issuance on November 12 coincided with Bitcoin surpassing $85,000 and subsequently crossing the $90,000 threshold.
Thus, the recent increase in USDT supply could signal a growing demand for stablecoins, which are often used by traders to hedge positions or facilitate transactions without converting to fiat currencies.
Furthermore, this influx of liquidity can increase market depth, potentially reducing volatility and improving price stability across a range of digital assets.
Read More: Discover the best stablecoins for November 2024
Tether issuing USDT during the Bitcoin price rally in November. Source: Lookonchain
Earlier this month, Tether released its quarterly earnings report, reporting record revenue. In Q3 2024, the stablecoin issuer reported a total profit of $2.5 billion, bringing its assets to $134.4 billion.
The company's CEO, Paolo Ardoino, also revealed that the company's reserves include 2,454 BTC and 42.3 tons of gold.
New avenues for business expansion
With this year’s revenue growth, Tether is actively exploring new businesses and avenues for expansion. The company is considering lending to international commodity traders, particularly in developing markets.
Additionally, the brand completed its first crude oil transaction in the Middle East earlier this month. The $45 million deal, which was completed in October, involved 670,000 barrels of oil transacted using USDT.
This marked a significant milestone in the adoption of stablecoins for large-scale commodity trading.
Despite these advances, the USDT issuer continues to come under fire. A recent report from the Wall Street Journal alleged Tether’s potential involvement in illegal transactions.
In response, Paolo Ardoino stated that Tether has not observed any signs of a federal investigation, reaffirming the company's commitment to compliance and transparency.
The article Tether issues 7 billion USDT and boosts crypto market was first seen on BeInCrypto Brasil.
