Tether recently made waves with its authorization of $1 billion in USDT tokens. This move is set to provide a significant liquidity boost to the Tron network, further drawing attention from blockchain enthusiasts and experts alike.
Tether’s Strategic Move: Understanding the Authorization
Blockchain trackers have detected a remarkable $1 billion authorization of Tether in the company’s Treasury. This authorization is poised to serve as a crucial component of the ongoing Tron issuance requests and chain swaps.
Paolo Ardoino, Tether’s Chief Technology Officer, clarified that this event represents an authorization rather than an actual issuance. The allocated USDT tokens are strategically earmarked as inventory to meet the future requirements of the Tron network. Notably, this strategic approach aligns with Tether’s commitment to security and efficiency in the token creation and issuance process.
The Significance of “Authorized but Not Issued” USDT
Tether’s official FAQ page sheds light on the importance of “authorized but not issued” USDT. This approach minimizes the need for Tether’s signers to access their authorization private keys frequently, reducing exposure to security threats. By authorizing USDT in the Tether Treasury, the company ensures it can issue USDT swiftly once customer funds are received, maintaining a secure reserve at all times.
USDT tokens on the Tron blockchain have witnessed record-breaking growth in 2023. The network boasts an impressive $42.8 billion in USDT circulation, surpassing Ethereum, which has approximately $39 billion USDT circulating on-chain.
Tether’s Ongoing Success
Notably, Tether’s market capitalization has surged beyond $83 billion in 2023, with a staggering $16 billion in USDT minted since January. Tether retains its position as the leading United States dollar-pegged stablecoin by market capitalization.
USDC’s Market Fluctuations AND SVB’s Influence on USDC
In stark contrast, Circle’s USD Coin (USDC) has experienced market cap fluctuations. Starting the year with $50 billion in market capitalization, it has dwindled to $26 billion at the time of this publication.
Also, the collapse of Silicon Valley Bank (SVB) has been cited as a significant factor in USDC’s market cap decline. Circle had $3.3 billion tied up in SVB when the institution collapsed in March 2023.
Read More:
OneCoin Scam: Lawyer Denied New Trial Despite False Testimony Claims
Blockchain Capital Secures $580 Million for Crypto Investments