CoinTelegraph reports that the company behind the cryptocurrency Tether has generated new tether currency equivalent to one billion dollars. Tether is the world’s largest so-called stablecoin and is tied to the US dollar. It’s unclear who has put in a billion dollars to cover the new tethers that have now been generated.
Tether has previously been criticized for their lack of transparency regarding whether there is actually enough dollars to cover the tethers that have been generated so far. Earlier this year, Tether generated more currency, and then too it was about new tethers equivalent to one billion dollars in value.
Tether’s CEO Paolo Ardoino said on X that the 1 billion dollars in Tether now generated on the Ethereum blockchain should be seen as “a stock”:
PSA: 1B USDt inventory replenish on Ethereum Network. Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.
Exactly what all this means is unclear. For those who have invested and trade with Tether’s currency, however, I guess it would feel satisfying with a bit more transparency from the company responsible for ensuring that the currency is actually tied to the US dollar.