According to new on-chain data, Tether just minted USDT tokens worth $1 billion. The company has recently been minting in high volumes, reporting record profits in the third quarter of 2024.
However, Binance and Circle today announced a partnership to potentially take on Tether, marking a potential new major rival for the company’s stablecoin market share.
Tether issues large volumes of USDT
On-chain data reports today (11) a massive new minting of USDT tokens. In fact, this is not unusual for one of the world’s leading stablecoins. Tether has been minting unusually high amounts of USDT lately, with 2 billion on December 6 and 19 billion in the last month.
Image: Tether mints 1 billion USDT tokens. Source: Whale Alert
Tether’s Challenges and Achievements in an Evolving Stablecoin Market
Overall, the company has been performing positively during the current bull market, continuing its relative dominance over the broader stablecoin market. The latest earnings report revealed that it achieved record profits in Q3 2024, as demand for USDT grew.
Furthermore, this success extends to regulatory wins. Earlier this week, the Abu Dhabi Global Market approved USDT as an Accepted Virtual Asset.
However, the company still faces several obstacles that may have motivated this token minting. Coinbase will delist Tether in the EU in December due to concerns about non-compliance with new MiCA regulations. Tether has already taken steps to reduce exposure in Europe.
Meanwhile, competitors such as Robinhood and Revolut are also considering new stablecoins to take advantage of Tether’s decline in the EU market. In the US, Ripple has also received a regulatory green light to launch its RLUSD stablecoin.
However, some social media rumors have linked this minting to an even bigger potential problem for the company. According to reports, Binance and Circle have announced a new partnership to use USDC to take market share from Tether. Circle’s USDC token is jointly owned by Coinbase, marking an alliance between two major exchanges with a long-standing rivalry.
Binance has undergone a profound transformation of its business, and over time, we mutually agreed that it made sense to pair one of the most trusted and regulated stablecoins in the world,” said Kash Razzaghi, Chief Business Officer at Circle.
However, this partnership is very new, and Tether has been minting unusually high volumes of USDT over the past month. If the company is gearing up for a new rivalry, it is in the early stages. In any case, there is not enough definitive information to speculate on Tether’s future trajectory.
The article Tether issues $1 billion in USDT appeared first on BeInCrypto Brasil.
