Recent monitoring of blockchain activity shows an important development in the cryptocurrency world – Tether authorized $1 billion in USDT tokens for the Tron network to improve liquidity. This news first emerged on the social media platform X, formerly known as Twitter, and soon drew comments from Tether’s CTO Paolo Ardoino.
Ardoino explained this was just an authorization, not an immediate release of coins. He said these funds are set aside for future issuance requests and to facilitate swaps between blockchains within Tron.
For those unfamiliar, Tether’s FAQ describes their “authorized but not issued” USDT concept. By doing this, Tether limits how often signers need to unlock keys, reducing security risks. Holding authorized USDT in reserves lets Tether quickly release coins when receiving customer funds, while fully backing what’s in circulation.
2023 has seen record USDT levels on Tron, now at $42.8 billion, surpassing Ethereum’s $39 billion.
This isn’t Tether’s first big authorization – they did $1 billion in June for Ethereum swaps.
Tether remains strong, passing a $83 billion market cap in 2023 and adding $16 billion USDT this year. For stablecoins tied to the US dollar, Tether leads in market cap.
Meanwhile, USDC from Circle fell from $50 to $26 billion, partly due to Circle losing $3.3 billion when Silicon Valley Bank collapsed in March 2023.
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