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Tether, the company behind the widely used stablecoin USDT, has minted an additional 1 billion USDT for future transactions on the Ethereum network. The move is part of the company’s efforts to maintain the stability of its market capitalization amid increased scrutiny.
Recently, Tether has been actively engaging in the cryptocurrency space, with notable activities earlier this month including purchasing bitcoin for its reserves and participating in mining operations. These actions coincided with the market’s anticipation of a potential spot ETF, which could have a significant impact on the cryptocurrency sector.
Despite transparency issues, Tether has shown resilience in its market capitalization. Notably, in November, the company saw market capitalization growth, attributed to large USDT issuances on the Tron and Ethereum networks, totaling $4 billion.
Additionally, S&P Global Ratings recently assigned a rating to Tether, which suggests limited stability in its ability to maintain the dollar peg that underpins the value of USDT. Stablecoins like USDT are designed to provide the benefits of a digital currency without the volatility typically associated with cryptocurrencies like Bitcoin and Ethereum.
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